Does it really? Fact of the matter is that buying a PPE item as I was once announced by one of my surprised friends requires one-off investment in terms of cash whereas renting it means you’re tied to cash outflows for a longer period. This friend of mine in fact thought that buying the asset would result in a one-off expense on the accounts as well. Little did he know that the asset is an investment and depreciated into expenses over a period in time which he got to determine.
Yes, indeed, PPE items do generate expense into the accounts, but the significance of those is entirely up to you really. For how long you think you’ll use the asset? Think it through and spread the expenses over the set period. Never think when buying PPE items that they’re an expense on the accounts in the full amount. They are not. It’s merely giving up a sum of money and then spreading the expense over the determined period we call “useful life”.
It’s a myth and people not knowing the accounting behind PPE really. Buying items of PPE is probably more rational than trying to do business without any PPE. Think “ownership” and “freedom” that comes with it.