You are asking for accounting guidance. Let’s review the basics:

“However, small tools aren’t really considered equipment to me. The small tools for a construction company are actually a significant business expense,”

The difference between Asset and Expense is “Useful Life.” It isn’t just “Cost” determination.

For instance, you might buy 5 of […]

Resolution for 'accounting guidance issue: 'Can a construction company list small tools as assets?' available: Yes.

The accounting guidance issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the accounting guidance issue yourself by looking for a resolution described in the article. If it is a complex accounting guidance issue or you are unable to solve the issue, you may contact us by clicking here or by using other accounting guidance support options.

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