If expenses are amortized monthly, you can prepare an amortization calculation table. The table includes long-term deferred expenses items, formation time, amortization time limit (months), monthly amortization The amortized amount, the amortized amount, and the unamortized amount. Just print it out as an attachment. If necessary, you can also ask the relevant leader to sign it.

Every month, just change the month at the top of the table. , the amortized amount and the unamortized amount are enough.

Amortization, in English, is Amortization, which refers to the annual amortization of operating assets other than fixed assets that can be used for a long time according to their useful life. The accounting treatment of acquisition costs is similar to the depreciation of fixed assets. Amortization expenses are included in administrative expenses to reduce current profits, but have no impact on operating cash flow.

Common amortized assets such as large-scale software, land use rights and other intangible assets and start-up expenses can contribute to the company's business and income over a long period of time, so their acquisition costs must also be allocated to Each year is reasonable.

The amortization period generally does not exceed 10 years. Like depreciation, you can choose the straight-line method and the accelerated method to amortize intangible assets. In terms of amount, under normal circumstances, amortization expenses are much smaller than depreciation expenses. That is to say, most companies' fixed assets are much larger than intangible assets, so amortization and depreciation are generally disclosed together without Add distinction.

According to Article 49 of the "Details of the Tax Law", enterprise preparation fees shall be amortized in installments starting from the month following the month in which production and operations are started, and the amortization period shall be no less than 5 years.

Land use rights should be amortized separately as intangible assets. As for the amortization period of intangible assets, if the contract has a stipulated number of years, it will be amortized according to the number of years stipulated in the contract. If there is no contract stipulation, it will be amortized according to a period of not less than 10 years.

Main Terms

Annuity (ANNUITY): A series of equal payments from one party to another.

COMMERCIAL LOAN: A loan provided to a business or government.

COMPOUNDING PERIOD: The time interval during which the bank calculates the interest rate on unpaid cash, which usually corresponds to the payment period, but this is not necessarily the case.

Financial capital (FINANCIAL CAPITAL): usually refers to capital used for investment.

Financial System (FINANCIAL SYSTEM): The sum of borrowers and lenders, including individuals, businesses and governments.

PAYMENT INTERVAL: The time interval between two payments.

Principal: The initial balance of a loan, or the total unpaid balance at any point in the repayment process.