Recently, a customer often asked me: "The accountant said that the LED screen we bought was recorded in the wrong account. Which subject should this thing be put in?" " Today I’ll break it down and explain it to you. I’m sure even the financial director will come to you for advice after reading it!

1. Determine the subjects based on their purpose, and don’t slap your head.

​​Core principle: Where the display screen works determines which ledger it should enter.​​

• ​​Advertising on shopping mall exterior walls​ ​: Monthly depreciation amortization​ ​Selling Expenses - Advertising​ ​, and can also deduct 15% of the tax (a supermarket chain saves 470,000 per year by this trick)
• ​​Stage performance as background​ ​:remember​ ​Fixed assets - performance equipment​ ​, depreciated over 3 years (a music festival organizer passed the tax audit in compliance with regulations)
• ​​Meeting room as electronic whiteboard​ ​: If you spend less than 8,000 yuan, go directly​ ​Administrative expenses - office expenses​ ​, exceeding the fixed assets of Guaguaiji

Here is a little trivia: LED screens of the same size may be used as monitoring monitors in warehouses.​ ​Production equipment​ ​, but it can be installed at the entrance of the warehouse as a welcome screen.​ ​overhead​ ​. Last year, a company was required to pay 216,000 yuan in back taxes because of this classification error.

2. Double thresholds for amount and years, these two numbers are stuck

​​5,000 yuan is a hurdle, 1 year is a line​​

• ​​≤5,000 yuan​ ​: Even if it can be used for 5 years, it can be directly expensed (a milk tea shop uses this rule to amortize the usage cost of 30 yuan/day)
• ​​5,000-10,000 yuan​ ​: Determine the accounts according to the using department (the production workshop uses it to calculate manufacturing expenses, and the administrative department uses it to calculate management expenses)
• ​​≥10,000 yuan​ ​: Fixed assets must be recorded (a large screen in the exhibition hall of a 4S store therefore incurred an extra 32,000 yuan in depreciation)

Pay attention to this pit:​ ​The total price of the splicing screen exceeds the limit and needs to be split​ ​! One company assembled six screens with a unit price of 4,800 yuan into a display wall with a total price of 28,800 yuan. As a result, the tax bureau determined that the fixed assets should be consolidated and the company paid more than 80,000 yuan in back taxes and late payment fees.

3. Special operations to prevent pitfalls

​​4 alternative ways to enter accounts​​

1. ​​finance lease​ ​: Monthly payment is variable rent, which allows you to use high-end equipment without taking up cash flow (an e-sports stadium uses this model to install an 8K curved screen)
2. ​​R&D expenses​ ​: The purchase fee for the test screen can be included in the​ ​R&D expenditure​ ​(An AI company received a super deduction benefit as a result)
3. ​​Construction in progress​ ​: The costs of brackets, wiring, etc. during the installation phase must be capitalized (the LED sky screen of a shopping mall increased the asset value by 430,000 yuan)
4. ​​In stock items​ ​: Prototypes of production companies must be transferred to inventory and cannot be held on account for a long time (a certain manufacturer avoided an inflated inventory of 5.6 million yuan because of this)

Important reminder:​ ​Don’t forget about maintenance fees​ ​! Normally, lamp replacement is an administrative expense, but if the entire screen is upgraded to 4K resolution, it may be considered a capital expenditure.

personal opinion time

After working in the display industry for more than ten years, I have seen too many companies stumble on this matter. Let me tell you, accounting is like installing a screen——​ ​Once the basic framework is set up correctly, subsequent debugging will be smooth.​ ​. Nowadays, some smart screens come with built-in usage data tracking and can automatically generate equipment utilization reports, which is a great tool for depreciation calculation.

Finally, a hard-core data: Industry research in 2025 shows that,​ ​Companies that correctly classify LED screen assets will reduce their average tax costs by 18.7%​ ​. The next time you purchase, remember to hold a meeting with finance and suppliers. After all, what we sell is not just hardware, but also a complete set of financial and taxation solutions!

for more product information and pricing, please contact us .