Processing Investments and Depreciation in Gekko

When you make a business purchase over €450 (excluding VAT), such as a new phone, it may be considered a business investment.

This means you should not only record the purchase as a regular cost in Gekko, but also register it as an investment on your balance sheet, which you then depreciate over multiple years.

The VAT you paid on such an investment can, in most cases, be reported immediately in your VAT return. Gekko will automatically include the VAT from investments in your VAT report.

Two Ways to Add Investments in Gekko

You can record investments on your balance sheet in Gekko in two ways:

• As an investment without a cost category
• As an investment with a cost category

Using a cost category for investments is the most common method and allows you to clearly see the investment on your Gekko financial reports. We explain this method in more detail below.

Investment with a Cost Category

Investments should be properly recorded in your administration, as they are important for your balance sheet. To register an investment correctly, follow these steps:

1. Create a Cost Category for Investments

Go to the Cost Categories page in Gekko and create a new category, for example named "Investment".
Mark this category as a "Balance Sheet Investment" by enabling the toggle (it will turn blue).
Also mark it as VAT deductible, if applicable.

2. Save the Cost Using the "Investment" Cost Category

If you're adding a new investment, save it as a cost using your newly created "Investment" cost category.

Already recorded the cost, but need to convert it into an investment?
Open the existing cost entry and change the category to your "Investment" cost category. Then re-save the cost.

3. View Your Investment on the Balance Sheet

Your investment will now appear under Investments on the Balance Sheet page in Gekko.

What’s still missing is the depreciation of the investment.
The most common depreciation rate is 20% per year, meaning the investment is fully depreciated over 5 years—though this may vary depending on the type of asset.

Click the plus icon under “Depreciation Years” to automatically distribute the depreciation over 5 years, down to a residual value of €0.

4. Annual Report

In your Gekko financial report, your investments are listed under Assets on the balance sheet.
The depreciation is recorded each year under Total Costs, as part of the Profit & Loss Statement.

Custom Depreciation and Residual Value

Do you want to set a custom depreciation schedule or keep a residual value above €0?
That’s possible, but you’ll need to manually enter the depreciation amounts per year.

In that case, fill in the depreciation amount for each year manually in the appropriate field, and click the floppy disk icon on the right to save.