What is leasing?
The term “leasing” is derived from the English word “to lease”, which means “rent out”. Leasing is one of the types of financial services where various funds are purchased through loans. That is, in other words, it is a long-term financial lease.
In the case when it is very difficult to get a loan from banks and other credit organizations, and there is no opportunity to attract investments from foreign entrepreneurs in your business, leasing is the best solution for the development of many Russian enterprises. It provides an opportunity not only to expand the production base of the organization, but also to acquire new equipment, as well as introduce new technologies into production.
What is the meaning of leasing, you ask? The fact is that a particular company acquires ownership of various property and leases it for a long time to another organization. During the entire period of operation, this organization pays the lessor the full value of this property, together with the due remuneration. After all obligations between the two business entities are fully met, the property becomes the property of the tenant. The advantage of leasing is that there is no need to provide any collateral amounts. Lately, leasing is increasingly entering into various branches of industrial activity, such as leasing vehicles, equipment, leasing agricultural equipment and other types. The object of leasing can not be land and objects that are prohibited by law for free circulation.
The peculiarity of leasing is that it combines two types of services – long-term lease and financial lending. In addition, all leasing payments are included in the cost price of the property, which allows to significantly reduce the income tax liability. Also, the amount of VAT under the contract is set to offset. In addition, as a result of accelerated depreciation of a leased leased object, the amount of property tax is reduced by about 3 times. To account for financial transactions recently, it is convenient to use the accounting department. This is online accounting. With its help, you can keep accounting, tax and management accounting, generate and submit reports to government agencies via the Internet.