Title: What Is a Betterment for Accounting? | Small Business - Chron.com
Headings: What Is a Betterment for Accounting?
What Is a Betterment for Accounting?
Deciding on a Betterment
Betterment vs. Normal Expense
Recording a Betterment
Asset Depreciation
References

Content: What Is a Betterment for Accounting? | Small Business - Chron.com
What Is a Betterment for Accounting? Small Business
|
Accounting & Bookkeeping
|
Accounting
By Bryan Keythman Updated August 01, 2018
A betterment in accounting is a capital expenditure that improves the quality or extends the life of an asset, such as an upgrade of a machine’s production capacity. A betterment differs from normal repair and maintenance expenses. For example, replacing a broken pane of glass in a window is a repair, but upgrading to a more energy efficient window would be an example of a betterment. Which category you assign to your expenses affects your finances differently in your accounting records and financial statements. Understand a betterment’s characteristics to handle the expenditure properly in your small business. Deciding on a Betterment
There are some things to consider when deciding whether to spend money on a betterment. A betterment may lower your operating expenses, improve your production output or improve the quality of your products, all of which may result in higher profit. You need to compare the cost of a betterment, which takes place in the relative short term, with the benefits you expect to receive over time.