Lunic Software Can Help Your Business Manage Hire Purchase Assets with its new Accounting Software for Businesses in Australia
To become a successful business, you are going to need to acquire assets such as a building or machinery. Examples of assets include computers, computer equipment, office furniture and even company cars. As a business owner, should you buy these assets outright or consider a hire purchase or lease? If you choose the latter, Lunic Software can help you manage hire purchase assets with our accounting software, AssetAccountant. The software is designed as a comprehensive accounting solution for small and medium-sized businesses. Hire purchase assets accounting can be a difficult task without the use of an accounting software program. We at Lunic Software have designed AssetAccountant to make it easy for your operation to provide reporting, forecasting and journal entries for your General Ledger.
Hire Purchase or Buy Outright?
Deciding whether to buy equipment outright or to choose financing depends upon the financial picture of the business. Buying is a feasible option for businesses that have the capital available to do so. For many companies, paying for equipment on hire purchase makes more sense. Doing so allows the business to use an asset for a certain period while making payments for it. Instead of paying one large sum for equipment, for example, a business can make small payments and use the extra cash to invest in other areas of the business. There are also many tax advantages for businesses that choose this option. Accounting for those tax advantages is something that Lunic Software and AssetAccountant do very well. Our hire purchase assets accounting software makes it easy to report, forecast and account for all of your assets on hire purchase.
There are advantages to buying capital equipment outright. A business fully owns an asset when they buy it. There are tax advantages related to owning assets as compared to paying for them on hire purchase. In buying a piece of equipment, a business does not tie itself to a long-term agreement that it may have trouble ending. Plus, buying assets means a business will pay less in the long run when compared to financing a purchase. Still, most small businesses just do not have the cash flow that it takes to buy equipment outright. When you factor in the depreciation of an asset over time, it makes sense for many businesses to finance the purchase of their fixed assets.
Our Hire Purchase Assets Accounting Software and Your Business
At Lunic Software, we have over 25 years of experience in fixed asset software and small business accounting. Our 35 years of information technology experience has allowed us to develop a comprehensive accounting solution for large and small businesses as well as non-profit organisations in Australia. What AssetAccountant can do for your business is to calculate interest over different time periods, daily, monthly, four weekly or quarterly. Should you have a balloon payment schedule, our software can account for it. Comprehensive journal reporting for all of your hire purchase payments is available as is the ability to account for refinanced contracts.
AssetAccountant is the premier hire purchase assets accounting software in Australia. To learn more and receive a free trial version or a free demonstration of the product, contact us today on (02) 9437 6417 or email us at firstname.lastname@example.org.