1. Long-term deferred expenses refer to the expenses that the enterprise has already spent, but the amortization period exceeds one year (excluding one year). These expenses need to be amortized in a reasonable way and included in the cost of each period. Common long-term prepaid expenses include fixed assets repair, rent, insurance and so on.
2. Prepaid expenses refer to expenses that have been paid but cannot be included in the current profit and loss at one time. These expenses usually need to be amortized in the next few years. Common deferred expenses include advertising fees and membership fees.
When amortizing expenses, you need to pay attention to:
1. Confirmation of amortization period: when amortizing expenses, it is necessary to confirm the amortization period of expenses, and allocate the expenses to the cost of each period according to the amortization period. Different amortization periods will affect the amount allocated in each period, so it is necessary to accurately determine the amortization period of various expenses and allocate them according to the period.
2. Choose an appropriate amortization method: When amortizing expenses, you need to choose an appropriate amortization method, including straight-line method and accelerated depreciation method. Different amortization methods will have an impact on the amount allocated in each period and need to be selected according to the actual situation. For example, for the depreciation of some large fixed assets, you can choose the accelerated depreciation method, while for some ordinary equipment or software, you can choose the straight-line method to allocate.
3. Detailed accounting: For some expenses that need detailed accounting, it is necessary to conduct detailed accounting according to expense items or departments, so as to better track and supervise the use of expenses. Detailed accounting can help enterprises better grasp the expenditure of each project or department, find and control the use of expenses in time, and avoid waste and unnecessary expenditure.
4. Abide by accounting standards and tax laws: When accounting amortization expenses, it is necessary to abide by the relevant provisions of accounting standards and tax laws to ensure the accuracy and legality of accounting treatment. For example, the allocation of some specific expenses needs to be calculated and allocated in accordance with the provisions of the tax law to ensure that the accounting treatment of enterprises meets the requirements of laws and regulations.