what category I should put my shop tools?

Kernel2021

Hello,
I'm new to accounting and bookkeeping I'm trying to be my own accountant.
I just want some help regarding how to categorize my shop items.

I do cell phone/ computer repairs I have a corporation and I want to know if I buy tools how I would claim them to lower my business income.
For example I have a purchased a machine that I will use everyday to heat the phones and open the device .

item cost is 50 plus HST
should I do it Cost of sale, office supplies or just how I should do it the proper way because I have to file GST end of this month

Thanks!

CKEL

I would create an asset line for equipment bc since should your business close it is an asset bc you could sell it.

Kernel2021

Thank you! so when I create a bill for a vendor it won't allow me to attach it as an asset, but only like a cost of sale or office supplies.
Could you tell me how I can do that? link or post would be nice ,
Thanks!

KiahD

Hey @Kernel2021,

You should be able to select an asset account as the Expense Category when creating a Bill.

If you haven't already, you can first create the asset account for your equipment in your Chart of Accounts. On the Assets tab, under Property, Plant, Equipment, select Add a new account, fill in the details, and click Save. Check out this Help Centre article on how to create accounts for more info.

Then when you go back to your bill, you should see that account as an option