Your accountant is working on your end of year accounts. Earlier in the year your business needed some new equipment so you decided that to spread the payments for the new asset over 3 years made sense.
The company that arranged the finance said that it made financial sense to lease the asset, rather than using hire purchase, and ultimately owning the asset.
The sales argument from the finance company to favour leasing looked attractive as a way to beat the taxman. It allowed you to write off 100% of the asset value against corporation tax.
You accountant is going to get annoyed, because financially hire purchase was the better option.
If you’d have asked the advice of your accountant at the time of purchase, you would have opted for hire purchase. You’d have been better off and the accountant would have happy having provided the sort of added value they are always telling you they offer, often free of charge.
A good finance company works with accountants to provide the best deal for all concerned. The asset buying company wins though financial savings. The accountant wins through adding value and developing a closer relationship with clients. The finance company wins through repeat business from the happy accountant.
So when looking to finance assets for your business, remember your accountant can help through advice and a good working relationship with a modern finance company.