Authorising and paying for an asset

Buying a non-current asset is a big decision that lasts for years. So it is approved before the order is placed, not after.

Skelwith Roasters has a simple rule. The roastery manager can approve spending on assets up to £1,000. Anything above that needs the owner's signature on a capital expenditure authorisation form.

• The need for the asset is written down
• Quotations are compared from more than one supplier
• The business checks how it will pay
• The right person approves in writing

After the asset arrives, it is added to the non-current asset register.