The long-term deferred expenses of small businesses are as follows:
1. The acquisition cost of long-term deferred projects
Refers to the direct cost of long-term deferred projects purchased by the enterprise , such as the cost of purchasing fixed assets, purchasing patent rights, copyrights, etc.
2. Transportation costs for long-term deferred projects
Refers to the costs of transporting long-term deferred projects to the location of the enterprise, such as transportation fees, insurance premiums, etc.
3. The installation costs of long-term deferred projects
Refer to the costs required for the installation and debugging of long-term deferred projects, such as labor costs, material fees, etc.
4. Test production expenses of long-term deferred projects
Refers to the expenses incurred during the test production stage of long-term deferred projects, such as test material fees, test labor costs, etc.
The reasons why small businesses need long-term prepaid expenses:
1. Purchase of fixed assets
When a small business is established or expands its business scale, it may need to purchase Fixed assets such as equipment, machinery, etc. Due to the long service life of these fixed assets, the expenses cannot be included in the current cost in one go. Instead, they need to be amortized over a certain period of time and spread over multiple accounting years year by year to reflect their use over many years. Cost allocation.
2. Amortization of R&D expenses
When small businesses conduct product R&D or technological innovation, they may need to invest a certain amount of R&D expenses. These R&D expenses usually cannot be directly reflected in the form of goods or services and need to be amortized according to a certain period of time and spread over multiple accounting years year by year to reflect their contribution to the company's future earnings.
3. Purchase of franchises or patents
Small businesses may purchase franchises or patents to obtain exclusive rights or technological advantages. The acquisition costs of these interests are usually high and have a long service life. They cannot be included in the current cost in one go and need to be amortized over a certain period of time.
4. Rental costs of buildings or land
Small businesses may lease buildings or land as office space or production facilities during their operations. These lease expenses generally need to be amortized over the term of the lease contract, spreading the expenses year by year over multiple accounting years.