Understand the capital equipment accounting options your business might use as tools to make additional capacity attainable.

We've often spoken with business owners, plant managers, and even head engineers that face circumstances where they have to make the terrible choice between walking away from business opportunities versus shelling out a significant percentage of their cash-on-hand to invest in the capacity needed to win new business.

The Business Owner's and Engineer's Capital Accounting Guide to Financing VFFS Packaging Machines

Companies like yours have to invest cautiously - because cash-on-hand and other high-liquidity assets are your safety net. If the business disruptions of COVID-19 taught smaller or privately-held businesses anything, it's that having a financial safety net is crucial to weathering inevitable economic downturns. 


So what are feasible ways of capitalizing equipment that minimize your cash outlay?


As an owner or stakeholder in your company, you still have to invest in your business - in adding capacity, replacing spent equipment, etc., and the big picture discussion around the business implications of financing capital equipment is seldom discussed in an easy-to-digest way for anyone that doesn’t come from a financial accounting background. Many capital equipment leasing companies aren't actually familiar with the long-term financial implications of their capitalized leases. 


We have created this free 7-page guide demonstrating several capital equipment accounting methods. By showing balance sheet and P&L examples and ending balance results, you can gain an understanding of: 

  • What is bonus depreciation and how can you use it as a tool before many of the tax code allowances sunset at the end of 2026?
  • How your two-year cash positions change depending on capital accounting methods such as straight-line depreciation versus bonus depreciation. 
  • How a capitalized lease for packaging equipment is much different than an operating lease and comes with important tax considerations and advantages.

Please fill out the form to download your complimentary e-book now.

Different Stand Up Pouch Styles Available on Rovema VFFS Machines