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Post Info TOPIC: Treatment of Software in Accounts
Summer


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Treatment of Software in Accounts
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Having a bit of a blonde moment here, but I've just upgraded to Sage Line 50 multicompany at a cost of £850, and I'm not sure whether I should treat it as an expense or a capital item. Obviously I intend to keep it for a few years and would normally capitalise such a large amount, but I'm always reluctant to capitalise software for my clients.

Any thoughts on this would be great smile

Summer



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Fay


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I generally set software costs against P&L expenses. However £850 is a lot to write off and you may struggle to convince the revenue it's not a capital item. Nevertheless if it was me I would still put it to the P&L.

Best wishes.

Fay

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Jim85


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£850 for software!! Me thinks I'll stick with Excel for the time being whilst I save up the pennies!smile

Jim

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Summer


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Was leaning towards sticking to the P&L, so will probably put it there for the time being. Can always change my mind until I finalise the accounts!

Thanks,

Summer



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