 the depreciation because that's like the most extreme case of like a prepaid kind of situation so and it's also one that you can't avoid again even if you're a cash-based system so even if you're a cash-based system you're saying hey i'm doing everything cash-based well the tax code is still going to force you with large purchases like equipment buildings even if you paid cash you can't just write them off as an expense and you can see why that would be if you had a hundred thousand dollar building expense down here and then you tried to compare january to february it would be like if you bought the building in january you would have this massive loss in january compared to february which isn't actually accurate in terms of the performance because you bought the building and you're going to use it for 30 years into the future so there's you don't have the comparability and it's so extreme it's so obvious that that's a problem with comparability with property planting equipment that even if you're on a cash-based system where you're kind of forced people just recognize that oh yeah i got to put that on as an asset well why because you're doing an accrual thing you're putting on the books as an asset as opposed to expensing it when you purchased it because it's such an extreme example of the situation and the tax code is going to force you to do that as well so notice that the furniture and equipment shouldn't have too many transactions related to it so whenever you make purchases then you can give that usually the subledger is going to be done by your tax professional so you're usually going to have to be dependent on the tax professional to give you the depreciation schedules which they can do either on a book basis or a tax basis and then we're going to have to record the adjusting entry of accumulated depreciation that's when we allocate the expense to the time period we actually used it or that's what we're trying to do although it's just an estimate which is why we we don't actually write down the furniture and fixture or fixed asset account but use another account called accumulated depreciation it's a contra asset account so we'll dive into that more detail later but everybody kind of has to deal with that accrual thing even though even if you're in a cash based system in your small business and you're just trying to do things for taxes or something like that