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Old 02-06-2008, 11:22 AM
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Outdoor Creations Outdoor Creations is offline
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Join Date: Apr 2007
Location: Sioux Falls SD
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How do I figure wear on equiptment?

I was tring to figure out how I put into my pricing wear on trucks, skidloaders, mowers and all other equiptment in to each job. There has to be a standard that would be charged for each job. By the hour used? What better place than this to ask. Any info would be great!
Thanks,
Zach
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Old 02-06-2008, 09:32 PM
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SILVERSTREAK INC SILVERSTREAK INC is offline
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Location: Horsham, Pa
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a way to figure would be to count on all things to turn to dust after 7-9 years

so inventory all your stuff and say its 90000, well figure you better be putting 10k a year away for replacments, obviously weedwackers and blowers wont last more than 3-5 and being that most have 8 months of the working season, that would be 1250 a month

and if after 9 years you can still turn around and sell off the trailer and truck and put a few bucks towards the inflation (your 2004 f-250xl that cost you 24,900 is gonna cost prolly 30k by 2012) then good going

i havent done this but have been thinking more and more about it, and if anyone has a gross margin precentage to add to a job cost that would be awesome!
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Old 02-07-2008, 10:23 PM
SwihartServices SwihartServices is offline
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Location: tipp city ohio
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I'm not an accountant but I'm pretty sure you account for it on your balance sheet as a contra asset called depreciation. I think it goes against equipment value. As far as finding what the dollar amount is I forgot the formula. I do know there is one. Just call up an accountant. They will know.
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Old 02-07-2008, 11:01 PM
SwihartServices SwihartServices is offline
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OK found the answer, the account is called accumulated depreciation. and the IRS has something called a general depreciation schedule that shows how much value a certain asset has lost over a certain period of time.
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