Find out the approved amounts and obtain clear support documentation before you make expenditures. The Budget There are two types of budgets to prepare. There is the capital budget and the expense budget. Expense items are typically of lesser cost and written off the same year as purchased. In the United States these items are treated separately for tax purposes and therefore must be tracked separately.
Similar rules exist in other countries.
It is important to understand your company's rules for depreciation. While there are governing laws to follow, they are usually open to interpretation. For example, you may purchase a motorized filing system. You want to classify items correctly so ask for interpretation up front from the financial officer. It is important to know that capital purchase depreciation is a monthly amount that will impact your expense budget.