Share this content

Accounting for rentals

Didn't find your answer?

Hi, we are considering to offer the option to rent our equipment to distributors. Currently they have to buy a demo system outright. I need to try and understand how this will affect our turnover, but unsure how to model this in. Say 10% of our current sales will be on rental basis. Minimum rental term is 6 months. It will take 3 years of renting to get our money back on 1 system. Will there be a COS? any help or your own experience with rentals will be greatly appreciated! thank you

Replies (2)

Please login or register to join the discussion.

avatar
By Accountant A
15th Jun 2020 20:27

97t

Thanks (0)
avatar
By Tax Dragon
19th May 2020 17:57

If "will there be a COS?" is really the only question that occurs to you, then I have to second AA's comment in entirety.

Thanks (0)
Share this content