Speak with your tax professional about what minimum limit you should track for major purchases (i.e. items over $500, $1000, etc.).   These are items that could be computers, machinery, office furniture, leasehold improvements and so on.  Usually, these items can’t be expensed all at once.  They are amortized over the course of 3 years, 5 years, 7 years, or longer.

Your tax preparer can help you classify these assets and let you know the schedule of depreciation.  A program like QuickBooks can help with tracking individual assets, too.  You can then setup the monthly depreciation expenses so your financial reports will be more accurate.  Also, speaking with your tax professional BEFORE the end of the year can help you plan whether you should make a major purchase now, or delay into the next cycle.

Also, don’t forget to keep good records about these purchases.  Keep original invoices to archive indefinitely.  You should also keep receipts for freight charges, delivery, installation services (i.e. electrician to wire power for a new piece of equipment).  Expenses directly related to the specific asset may also be part of the deprecation schedule.  Keep good notes and make sure your vendors detail their invoices to you accordingly.

Tax law changes each year, and the qualifications for assets also change.  You probably maintain a maintenance record for major equipment.  Don’t forget to keep thorough financial records as well.