The main difference between Repair and Maintenance is the type of work that is done. Repairs are undertaken when something breaks or stops working. On the other hand, maintenance is carried out on a regular basis to prevent damage. Proper maintenance of buildings and machinery can increase their lifespan. By carrying out regular cleaning and repair, properties can be maintained for longer and prevent breakages. This will save a lot of money. In addition, regular repairs will prevent deterioration and extend the life of furniture and fixtures.
Repair and Maintenance expenses are considered routine business expenses and are deducted from the petty cash. In most cases, these costs are incurred for repairs of equipment and machinery. These expenses are included in the balance sheet as an operating expense. However, repairs can be planned and will be carried out over the coming year. In the event that you do not plan ahead for maintenance, it will be included in the current year’s financial statements as an expense.
Repair and Maintenance expenses are common costs in any business. These expenses include repairing or replacing fixed assets that are essential to the operation of the business. While there are different ways to determine the amount of repairs and maintenance incurred, the amount should be based on the type of fixed assets. Generally, the fixed assets in a business will not remain in top condition forever. In addition, they may also need regular maintenance. This is called preventive maintenance.