Please note: If you later plan your cash, you have to make sure that you fully regard the initial sales price and not the depreciation. If you plan to use your 1,000 USD item for 5 years, you could (plainly speaking), each year regard 200 USD as depreciation. You only regard the annual decrease of value. So, how to regard them in your business plan? Within the cost items above, you don’t regard the acquisition value. The problem: The assets will decrease in value the longer you use them. When you first buy them, let’s say for 1,000 USD, you basically just exchange money for assets in the same amount.
If you buy any assets for your business (for example machines, computers, even cars), you usually plan to use them over a certain period.