ANSWER ID:9111, 9112Hire purchase is a business agreement, similar to leasing, where purchased goods are paid for over a period of time rather than paying the full cost up front. Unlike leasing, the goods are owned outright after the final payment. | UI Text Box |
|---|
Example A start-up coffee roasting company doesn't have the capital to outlay the full cost of a commercial roasting machine. Instead, they enter into a hire purchase agreement to buy a roaster over a 3 year period which allows them to start roasting immediately. |
AccountEdge can be set up to record the specifics of your hire purchase arrangement, but there's a few variables which need to be considered, including: - the terms and conditions of your hire purchase agreement
- your GST reporting basis (cash/payments or accrual/invoice)
- the tax/GST implications (the ATO (Australia) or IRD (New Zealand) have good info on this).
| UI Text Box |
|---|
| Want to learn more? We might not be experts in hire purchase arrangements, but our community |
forum | 
