Capital and inventory investments are two very different expenses impacting the profitability of your business. Knowing the differences between the two and how to manage them can make all the difference. Capital investments are things like office equipment and machinery, and these items are usually depreciable over time. When you purchase an expensive piece of equipment you determine your business needs - and shop for the best brand, quality, and price to insure you get the best value. If the purchase can not produce a positive return on investment (ROI) for the life of the equipment it is best not to make the purchase.

Inventory investments are purchases of items you use to produce a product or service, from raw materials to finished goods. These items are usually taxable and take up costly storage space. For many businesses inventory builds up gradually over time and becomes an often overlooked expense.

U.S. Chamber members will receive a $10 gift card when they sign up for or renew an existing Sam's Club^® Business Membership by December 31, 2010. Click here to access the certificate. For more information, call 800-726-7258.

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