Office equipment definition
/What is Office Equipment?
Office equipment is a fixed asset account in which is stored the acquisition costs of office equipment. This account is classified as a long-term asset account, since the asset costs recorded in it are expected to be held for more than one year. It is paired with and offset by an accumulated depreciation account, in which is stored the cumulative amount of depreciation associated with those assets.
Types of Office Equipment
There are many types of office equipment, which include the following:
Desks and workstations. Desks provide employees with a dedicated space to perform tasks, often including drawers or compartments for organization. Workstations may be modular and designed for efficiency in open office layouts.
Chairs. Office chairs are designed to support employees during long periods of seated work, with ergonomic features to promote comfort and reduce strain. Other seating includes guest chairs and conference room seating for collaborative spaces.
Computers. These are essential for most office functions, enabling tasks such as communication, document processing, and data management. They may include desktop towers, monitors, laptops, and accessories like docking stations.
Printers and copiers. Printers and multifunction copiers allow for document printing, scanning, and duplication within the office. These devices can be standalone or networked, depending on the size and needs of the organization.
Telephones. Office phones, headsets, and conferencing systems support both internal and external communication. Modern setups may also include VoIP and video conferencing equipment.
Filing cabinets. Filing cabinets store physical documents securely and help maintain organization. Storage units may also include shelving and lockable compartments for supplies or records.
Projectors and presentation tools. Projectors, whiteboards, and digital displays are used for meetings, training sessions, and presentations. These tools enhance visual communication and group collaboration.
Postage equipment. This includes postage meters, envelope stuffers, and mail sorters used for outgoing correspondence. It streamlines the mailing process and ensures proper postage tracking.
Time clocks and attendance devices. Time clocks and biometric scanners help track employee attendance and hours worked. These devices feed data into payroll and time management systems.
Accounting for Office Equipment
When office equipment is purchased, it is recorded within the Office Equipment asset account, as long as the expenditure exceeds the organization’s capitalization threshold; if not, it is charged to expense. The equipment is then depreciated over the term of its expected useful life. Once this useful life has been reached, all depreciation stops, since the book value of the asset will have declined to zero. When office equipment is disposed of, the initial asset entry and the associated accumulated depreciation balance are reversed, which clears the asset from the accounting records.