Why Your E-Commerce business needs Depreciation.com

The purpose of Depreciation.com is actually to charge to expense the portion of the asset which relates to revenue being created by that asset (wikipedia’s definition of depreciation). Essentially this is termed as the matching principle in which the revenues and the expenses appear in an income statement to the similar reporting period that gives you the best sight on how well the company have performed in the given accounting time. Indeed you can try this depreciation schedule.

The worry with the Depreciation.com is that actually there is the tenuous connection which is in between a generation of the revenue and the specific asset. Under tenets of the constraint analysis, then all the assets of the company need to be treated like the single system which generates the profit; so, there is essentially no way of linking the specific fixed assets to the specific revenue.

To go around to this linkage challenge, we assume the steady rate of the depreciation over useful life of every asset, so as we can approximate the linkage between a recognition of the revenues and the expenses in a period of time. This approximation actually threatens the credulity even much more when the company uses the accelerated depreciation because the key reason to use it is to defer the taxes. Also, the matching principle does not work in those cases where depreciation expense is recognized but there are no sales, as occurs in seasonal sales situations. The reason onto why you need Depreciation.com is as follows:

a little red car depreciating on a pile of money

a) To Calculate the True Profits:

Depreciation is the expense and this becomes the important element of a cost of the production. Though it’s not that visible like the other expenses and hardly paid to an outside party though it is very desirable to control depreciation on the fixed assets because these are being used for the earning purposes; therefore their depreciation need to be deducted out from the income being earned from their own use so as to calculate the true profit net or the loss.

depreciation graph with men and clouds

b) To show the true Financial Positions:
The financial position actually can be well studied from a balance sheet and also for a preparation of the balance sheet of the fixed assets which are needed to be shown in their true values. If the assets are well shown in a balance sheet by not any charge being made for the use or the depreciation, then the value need to have been exaggerated in a balance sheet and cannot reflect true financial positions of the business. Therefore, for a purpose for reflecting the true financial position, it’s necessary that Depreciation.com need to be deducted from assets and then be reduced values which may be well shown in a balance sheet.

tax depreciation depiction
c) To make the Provision for the replacement of the assets:
If the depreciation is not well provided, the earnings of a concern can be exaggerated and may be dispersed to shareholders as the dividend. At the end of a working life of an asset, there can be no funds or provision at a disposal of a concern and those to borrow for the purchase of the new assets. The provision for the depreciation is a charge to profits and loss account though depreciation is not paid. The amount of Depreciation.com accumulated in the working life of an asset offers the added working capital in addition of providing sum in the end of a working life of an asset for the replacement.

Follow depreciation.com on LinkedIn

How Studio Culture will Help Your eCommerce Website

For any e-commerce website to thrive, effective online visibility is paramount. This simply means that your customers have to find your products easily. The online competition from marketers and companies is cut-throat, to say the least. Players in the industry are always seeking for ways to draw in prospects. In light of this, there is a great need for every e-commerce website to have a strategic SEO plan (Search engine optimization (SEO), says Wikipedia). Thankfully, you do not have to look far to find the best SEO Brisbane company. Studio Culture is one of the leading SEO providers for e-commerce websites.

How will Studio Culture help your e-commerce site?

As alluded to above, e-commerce sites must find relevant customers in their numbers to achieve their bottom line. To this end, there is need to apply Search Engine Optimization strategies. This way, these sites will grow their visibility through enhanced traffic and leads. The end result is to have more people buying products and services. Studio Culture will help you tap into this success. This SEO Brisbane agency works by adhering to a number of tenets as detailed below.

Cubes with SEO embossed on them

– Updated SEO strategies and tactics

The world of Search Engine Optimization is highly dynamic. In this respect, keeping abreast with the latest strategies is the sure way to win. This SEO company only applies the latest approaches to make your e-commerce website rank high on search engines. Therefore, the SEO team at this company is always employing updated tactics that will give you satisfactory results.

– Visible and tangible results

Long gone are the days when SEO results were hard to quantify. Studio Culture works with positive results in mind. This means that you do not have to take chances or speculate on your online success. Proven and updated strategies will ensure that you see tangible and clear results.

seo art icons

– Qualified and experienced team

The Studio Culture SEO team is highly qualified and experienced to give you the best SEO Brisbane services. These professionals will not stop until your e-commerce website starts to bear fruit. The customer care staff is also dedicated to offering exceptional customer service; so that you can get full value for your money. Therefore, whenever you call or send an email, you can expect a prompt response and positive feedback.

SEO Brisbane
– Outstanding reporting

One of the most important components of SEO is reporting. This is how an e-commerce site gets to see the results. To this end, you want an SEO service that provides clear numbers and figures to showcase progress.

– Reduce marketing budget

Marketing an e-commerce site is a very expensive undertaking. Through SEO however, you apply tactics that will draw customers organically. This way, you draw relevant customers without having to spend a fortune.

The list above just shows a few reasons why this SEO company will be of help to you. Look at the Studio Culture portfolio online and get a sense of the wide clientele the company has worked with. Rest assured you will be working with one of the most trusted SEO agencies in Brisbane. Therefore, if you are struggling to make your e-commerce store a success, we are the right people for you. If you are just starting out with e-commerce, implementing SEO from the onset is even more beneficial in the long run. We are here to help you succeed.