Stationery is something that is really important especially for an established company.
It helps in branding and maintaining trust among company employees as well.
We also recommend startups to have their own stationary after they have confirmed their business model and there have consistently been shown to have some growth in the last 3 months consecutively.
In this post, we’ll talk about is stationery an asset or an expense and try to make informed decisions based on it for future betterment.
Is Stationery An Asset Or Expense?
It’s a bit complicated to understand but, here’s the definition:
If you’re currently using your stationary and have a stock of it than it’s said to be an asset. However, if your stock is used that means you need to make a purchase at that time it’s considered as an expense.
But, think about it for a second…
Your stationary plays a huge role in your companies branding.
Let’s say you invested in carrier bags with branding of your name on it. And that bag is used in multiple places. It’s free marketing right?
The same goes for other stationary material as well.
Basic Definition Of Asset
Asset simply means something whether in physical form or digital form to provide benefit in the future in one form or another.
Basic Definition Of Expense
The cost you spent on business operations necessary to run all the modules of your company said to be an expense. Almost, all the investments you make are considered as an expense but it depends which ones are giving you the most ROI. If the expenses giving you the positive ROI than it’s said to be an asset if they breakeven they can be considered as an asset.
But if the ROI is less than what you’ve invested in the first place than it’s said to be an expense.
The key here is to determine ROI for each individual expense bucket that you’ve invested for your company and calculate the ROI very carefully. As many times the calculations aren’t that easy to calculate.
Should You Invest In Stationary For Your Business?
Absolutely, you should. If you’ve already seen a positive growth than we definitely recommend you to consider investing in such a great technique that actually save your branding for years to come.
Your investment in stationary for your business today will stay for years in the form of pen, paper, shoppers and so on.
Final Thought
Is stationery an asset or expense? It’s an asset only when you’re currently using it. It becomes expense when the stock is fully used.
Our pick is that you should consider stationary as an asset and not expense. Stationary help in your branding and it’s never enough to invest in a brand, the more the merrier and the good part of stationary is that it’s somewhat necessary for a brand to invest in and it doesn’t cost much.