{"id":5308,"date":"2018-10-23T07:54:42","date_gmt":"2018-10-23T11:54:42","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=5308"},"modified":"2026-02-12T05:19:12","modified_gmt":"2026-02-12T10:19:12","slug":"investing-in-new-business-equipment","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/investing-in-new-business-equipment\/","title":{"rendered":"Three questions to ask before investing in new business equipment"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tThree questions to ask before investing in new business equipment\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col col-8 col-lg-4 entry-header__image\">\n\t\t\t<figure class=\"entry-header__thumbnail js-hero-section\">\n\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/05\/manufacturingoperarator-1215x810.jpg\" class=\"entry-header__thumbnail-image\" alt=\"Why new equipment should be in your operational plan\" fetchpriority=\"high\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/05\/manufacturingoperarator-1215x810.jpg 1215w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/05\/manufacturingoperarator-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/05\/manufacturingoperarator-1536x1024.jpg 1536w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/05\/manufacturingoperarator.jpg 1675w\" sizes=\"(max-width: 1215px) 100vw, 1215px\" \/>\t\t\t<\/figure>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2018-10-23T07:54:42-04:00\">October 23, 2018<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Three questions to ask before investing in new business equipment\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/investing-in-new-business-equipment\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/danmorris\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"30\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/Morris-DAngelo_TeamSpot_Daniel.jpg\" class=\"entry-author__image\" alt=\"Dan Morris CPA Dudes\" \/>\t\t\t\t<span class=\"entry-author__name\">Dan Morris<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Our tax code has an undulating history when it comes to incentivizing businesses to invest in new equipment. Before 1986, there were several methods of <a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/what-is-depreciation\/\">depreciation<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That all changed as depreciation was changed to \u201ccost recovery\u201d and concepts were established including \u201cbonus\u201d depreciation, accelerated and modified-accelerated, alternative depreciation systems including adjustments for the dreaded Alternative Minimum Tax (AMT), Section 179 expensing options and incentives associated with investment tax credits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The 2017 <a href=\"https:\/\/www.sage.com\/en-us\/blog\/tax-cut-jobs-act-how-to-navigate-the-business-aspects-of-tax-reform\/\">Tax Reform Act<\/a>&nbsp;(TRA) changed many of the provisions associated with equipment purchases, depreciation, expensing elections, and associated business benefits. The limits for expensing under Section 179 have increased to $2.5 million dollars and an effective 100% bonus depreciation. While expensing and bonus may appear to be the same thing, they are different as it relates to tax return attributes including AMT.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The TRA is business-centric. By increasing the accelerating methods for depreciation, for the majority of privately held businesses, acquiring equipment is nearly equivalent to any other expense except that the benefits of smart equipment purchases are redeemed over years and sometimes decades. There are several fundamental considerations for any significant equipment acquisition.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Sage Fixed Assets &#8211; 2021 Year-End Planning<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>It&#8217;s time to start thinking about year-end close.<\/p>\n<p>Join us on Thursday, October 28 at 2 PM ET to make sure you are prepared for year-end activities related to your company&#8217;s capital assets.<\/p>\n<p>&nbsp;<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/cp\/sfayearendplanning21\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-6095\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Register today<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/08\/SAGE_GAPPERSONNEL_BB_241017_0422_All-Uses-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/08\/SAGE_GAPPERSONNEL_BB_241017_0422_All-Uses-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-we-advise-entrepreneurs-and-their-management-to-consider-these-three-questions\">We advise entrepreneurs and their management to consider these three questions:<\/h3>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-what-benefits-will-the-new-equipment-provide\">1. What benefits will the new equipment provide?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Consider these and other operational improvements when weighing up the benefits of new equipment for your business:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>greater uptime<\/li>\n\n\n\n<li>improved operating efficiencies<\/li>\n\n\n\n<li>energy conservation<\/li>\n\n\n\n<li>state or local incentives<\/li>\n\n\n\n<li>changes to productivity<\/li>\n\n\n\n<li>quality enhancements<\/li>\n\n\n\n<li>scalability<\/li>\n\n\n\n<li>product line expansions<\/li>\n\n\n\n<li>estimated lifespan<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-what-costs-will-be-incurred\">2. What costs will be incurred?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Consider the impacts on these and other areas when introducing new equipment:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.sage.com\/en-us\/blog\/5-ways-to-manage-your-cash-flow\/\">cash flow<\/a><\/li>\n\n\n\n<li>financing (if applicable)<\/li>\n\n\n\n<li>costs of integrating the equipment into current operations<\/li>\n\n\n\n<li>employee disruption and retraining<\/li>\n\n\n\n<li>learning new quality controls<\/li>\n\n\n\n<li>potential rework due to learning curves<\/li>\n\n\n\n<li>increased property taxes<\/li>\n\n\n\n<li>financial statement considerations including covenant coverage and financial ratios<\/li>\n\n\n\n<li>the impact to equity owners<\/li>\n\n\n\n<li>the risk of technological obsolescence<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-how-should-the-equipment-be-acquired\">3. How should the equipment be acquired?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Considerations include the entity type and its independent tax rate, tax rate arbitrage (for example, corporate rates receive a 21% benefit and individual rates a 37% benefit, so it could make sense to have the owners or management acquire the equipment and rent it to the business), should the equipment be leased and if so, what type of lease (operating or capital) and should it be paid from retained earnings or financed under an installment loan?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While the above considerations aren&#8217;t inclusive, they should provide much of the inherent analysis that any successful entrepreneur and management team should undertake before investing material amounts into new equipment.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Top fixed asset management strategies<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>No organization can afford to manage their fixed assets based on spreadsheets and assumptions. Download our guide for best-in-class fixed asset management strategies to help you track, maintain, and depreciate your assets properly.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-1b39cfd3-e08b-4476-b865-537798c86fb8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2019\/03\/GettyImages-610219284-1064x810.jpg\" class=\"single-cta__image\" alt=\"Woman in business suit in warehouse\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2019\/03\/GettyImages-610219284-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-don-t-forget-state-taxes\">Don&#8217;t forget state taxes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Clearly, one of the benefits of acquiring new equipment under the new TRA is the immediate <a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/what-are-deductions\/\">deduction<\/a> for federal tax purposes. Caution must be expressed here as many states (California for example) don&#8217;t conform with the new rules. Failure to understand this easily creates situations where cash is spent, and state taxes are still payable. Candidly this comes down to the timing of when an expenditure is deductible rather than whether it is or isn&#8217;t deductible.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, even the best tax planners sometimes forget the state and local cost considerations. Now, back years ago when bonus and expensing limits were lower, the timing difference between federal and state taxation regimes was considered immaterial, but when spending millions instead of thousands, the spread must be considered.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-when-to-claim-depreciation\">When to claim depreciation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">An additional consideration for management and owners is when to claim the depreciation. Now that tax net operating loss <a href=\"https:\/\/www.investopedia.com\/terms\/l\/losscarryback.asp\">carrybacks<\/a> are disallowed, you should try to optimize marginal tax rates and their timing of deductions. Even though you can deduct the maximum values, it doesn\u2019t mean you should. If the equipment is financed, deducting early saves current taxes but at the cost of guaranteeing negative cash flows for payments without an associated deduction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While lenders and financial analysts understand cash flows, depreciation add-backs, and the infamous (and too-often sited) EBITA (Earnings before interest, taxes, depreciation, and amortization), many vendors don&#8217;t, so future trade credit terms and opportunities may be sacrificed if your depreciation expense overwhelms profitability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-weighing-up-the-benefits-and-burdens\">Weighing up the benefits and burdens<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The TRA is a windfall for equipment manufacturers, distributors, resellers, and especially for business owners that need new equipment. If you don\u2019t need it or can\u2019t benefit from it, then wait until you do or can. Otherwise, equipment and asset utilization planning is an imperative that all businesses should consider.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">My best advice is to always consider both the benefits and the associated burdens of investing material amounts in new equipment. This is especially important when investing in technological equipment as the nature of technology is to move swiftly and in uneven ways. Successful and smart entrepreneurs constantly evaluate their entire business ecosystem and adjust when prudent and consider the smartest ways to benefit from their purchase.<\/p>\n\n\n<div class=\"gate-ab515c6e-7e90-4c2f-a67e-113872516e8b wp-block-sage-subscription-form\"><div class=\"gcdc-loader gcv2-loader\"><\/div><\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Sage Fixed Assets &#8211; 2021 Year-End Planning<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>It&#8217;s time to start thinking about year-end close.<\/p>\n<p>Join us on Thursday, October 28 at 2 PM ET to make sure you are prepared for year-end activities related to your company&#8217;s capital assets.<\/p>\n<p>&nbsp;<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/cp\/sfayearendplanning21\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-6095\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Register today<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/08\/SAGE_GAPPERSONNEL_BB_241017_0422_All-Uses-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/08\/SAGE_GAPPERSONNEL_BB_241017_0422_All-Uses-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/fixed-assets\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tFixed Assets\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/growing-a-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tGrowing a business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/tax\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tTax\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-30322 post type-post status-publish format-standard has-post-thumbnail hentry category-accountants category-strategy-legal-operations tag-accountants tag-accounting-101 tag-boss-your-business tag-cash-flow tag-compliance tag-growing-a-business tag-sage-accounting tag-small-business tag-starting-a-business tag-staying-competitive tag-working-capital business_type-small-business business_type-accountants business_type-growing-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1214\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0640-1214x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0640-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0640-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0640-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-30T07:32:53-04:00\">September 30, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">12 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/accounts-payable-reconciliation\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tThe ultimate guide to accounts payable reconciliation\u00a0\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tWhen your accounts payable records match what your suppliers expect, you avoid costly errors and keep cash flow predictable. AP reconciliation is what makes that possible.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-30327 post type-post status-publish format-standard has-post-thumbnail hentry category-accountants category-strategy-legal-operations tag-accounting-101 tag-boss-your-business tag-business-intelligence tag-cash-flow tag-compliance tag-growing-a-business tag-tax business_type-small-business business_type-accountants business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-a-deferred-tax-liability\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-29T12:11:03-04:00\">September 29, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">14 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tDeferred tax liability: A practical guide\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-31288 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-boss-your-business tag-cash-flow tag-growing-a-business tag-small-business tag-staying-competitive business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/outstanding-checks-bank-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-684x384.jpg\" class=\"card-post__image\" alt=\"A woman on earophones taking notes\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-24T10:28:33-04:00\">September 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat are outstanding checks in bank reconciliation? How to identify, calculate, and manage them\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-37912 post type-post status-publish format-standard has-post-thumbnail hentry category-construction tag-construction tag-construction-hiring-retention tag-project-management tag-growing-a-business tag-hr-payroll tag-hr-software business_type-small-business business_type-growing-business industry-construction-and-real-estate\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/introducing-sage-hcm-for-construction\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_Construction-Commerical_0861-684x384.jpeg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_Construction-Commerical_0861-684x384.jpeg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_Construction-Commerical_0861-768x512.jpeg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_Construction-Commerical_0861-1214x810.jpeg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-23T04:08:21-04:00\">September 23, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">5 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tIntroducing Sage HCM for Construction: Connecting workforce and financial data for smarter operations\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-29480 post type-post status-publish format-standard has-post-thumbnail hentry category-accountants category-money-matters category-strategy-legal-operations tag-accounting-101 tag-cash-flow tag-sage-accounting tag-tax business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/accrued-expenses-vs-accounts-payable\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-529793801-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-529793801-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-529793801-768x575.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-529793801-1081x810.jpg 1081w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-02T04:37:41-04:00\">September 2, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat are accrued expenses? A guide for growing businesses\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Our tax code has an undulating history when it comes to incentivizing businesses to invest in new equipment. Before 1986, there were several methods of depreciation. That all changed as depreciation was changed to \u201ccost recovery\u201d and concepts were established including \u201cbonus\u201d depreciation, accelerated and modified-accelerated, alternative depreciation systems including adjustments for the dreaded Alternative [&hellip;]<\/p>\n","protected":false},"author":538,"featured_media":4230,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"","_yoast_wpseo_keywordsynonyms":"","_yoast_wpseo_primary_category":"43","sage_membership_post_content_type":"article","sage_membership_post_featured_video_id":"","sage_membership_post_video_type":"trailer","sage_membership_post_featured_video_duration":"","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[43],"tags":[382,153,118],"business_type":[41],"lilypad":[],"context":[],"industry":[],"persona":[98,96,97],"imagine_tag":[233,237],"coauthors":[722],"class_list":["post-5308","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-fixed-assets","tag-growing-a-business","tag-tax","business_type-growing-business"],"sage_meta":{"region":"en-us","author_name":"Dan Morris","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/05\/manufacturingoperarator.jpg","imagine_tags":{"233":"Medium Businesses","237":"Supply Chain Management"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/5308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/538"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=5308"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/5308\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/4230"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=5308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=5308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=5308"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=5308"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=5308"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=5308"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=5308"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=5308"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=5308"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=5308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}