Why bookkeeping is so important to investing

Investments: This is how long-term corporate success is achieved

Investing means acquiring assets that companies typically use for business purposes for several years. You can invest in tangible and intangible goods and financial assets. Typical tangible capital goods are:

  • Investment in real estate (buildings and land)
  • Investment in machines
  • Investment in vehicles
  • Investment in tools
  • Investment in IT and office equipment.

At physical capital goods are also referred to as physical investments. There is also Intangible assetsthat a company can invest in. These investment opportunities include:

  • Licenses
  • Patents
  • Goodwill
  • Concessions

Also Financial investments are possible, e.g. B. Participations in other companies or creditors' rights, such as bonds.

It is characteristic of every investment that a lot of money is needed for this, the Investment amount or the Investment amount. However, companies are not allowed to claim the entire investment amount immediately as costs, but have to claim it Write it off bit by bit over the period of use. The cost of an investment is recorded in the accounting as a depreciation. The useful life is usually specified by the BMWi using depreciation tables (depreciation = depreciation for wear and tear, depreciation for short).