Finimpact

Frequently Asked Questions(FAQ)

Are supplies inventory or equipment?
Supplies and inventory are more closely related but are also separate things. Supplies are typically used to run daily operations and can help create inventory. Inventory is the parts that will then become the end product you sell. Equipment is also separate, as it’s used in conjunction with supplies to create the inventory.
Is a desk considered supplies or equipment?
Desks are often considered equipment since they can be used for more than a year and don’t always come cheap. Desks are a necessity that can help you create the product you’re selling, whether that’s just thinking up the idea or physically creating it.
What is the difference between equipment and accessories?
Equipment and accessories can be used in tandem with each other. Equipment is the machine or component that creates your product, accessories can be added to the equipment to enhance it or make it easier to use.
What are the differences between supplies and inventory?
Simply put: supplies help you run daily operations while inventory becomes the product you’re selling. So, for example, a bakery uses supplies like paper and ink to print out recipes and signage for their business, but their inventory would be the flour, sugar, yeast, and anything else used to create the baked goods.

Conclusion

Equipment and supplies are two key elements in creating a successful business, but they are not the same. Knowing how to classify business equipment and supplies correctly can help you get the tax deductions you’re entitled to. Plus, you can understand the financing or leasing options that come with equipment, but not necessarily for supplies. 


If you are in the market to finance equipment, consider going through Credibly. They provide small business loans and
equipment financing with approval times of just four hours for most clients. Take a look at our full review for more info!

About the Author

Christopher Murray

Christopher Murray

Personal Finance Expert

Christopher Murray is a professional personal finance and sustainability writer and editor who enjoys writing about everything from budgeting and saving to unique investing options like SRI and cryptocurrency.

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