the purchase of PC protection Norton should be regarded as expense as it is valid for one year, but what if we started strading in Feb and bought this protection in May, should I depreciate it for 9months as used 9months in one year accounting period, and the other 3months depreciation should be related for next accounting period?or can I just deduct full price as expense on the year I bought?
Would be greateful for answers,as I am a bit confused now.
To be honest I would always tend to expense software. You don't actually buy the software only a license to use it. This cannot generally be transferred to anyone else so I don't see it having any actual value once bought.
On an aside I see Noton as a liability rather than an asset anyway.
I tend to expense software too (particullarly software that needs to be renewed annually) but I do it over two periods if I buy it during the financial year.
I had problems with Norton 360 earlier in the year but v6 seems to be less processor hungry.
Bill, so you deduct in parts this expense, for example if you used for 9 months, you deduct 9/12*pc security price?and the another part 3/12 would be prepayment than?
I pay about £20 a year for each batch of 3 PC's (thankyou Amazon ).
This is too immaterial to start thinking about accruels and prepayments.
I would actually say just expense in the current period.
Shaun.
P.S. Bill, agree totally over Norton. It used to be really resource hungry but nowadays you don't even notice it running, even as a scan unless it finds something. Really is a lot better product than it used to be.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Bill, so you deduct in parts this expense, for example if you used for 9 months, you deduct 9/12*pc security price?and the another part 3/12 would be prepayment than?
Yer, that might be the other reason that I don't notice it running in the background (Actually, it's 6 core with 6 gig and still lives in the shadow of your rig Neil. lol).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Think that I'm slipping into there or there abouts territory Bill!
Personal view is that this is too immaterial but I will add to that that as always you are doing it properly where I'm playing the immaterialarity joker card.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Even in his absence the third Amigo is still mentioned with reverence
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
the purchase of PC protection Norton should be regarded as expense as it is valid for one year, but what if we started strading in Feb and bought this protection in May, should I depreciate it for 9months as used 9months in one year accounting period, and the other 3months depreciation should be related for next accounting period?or can I just deduct full price as expense on the year I bought?
Would be greateful for answers,as I am a bit confused now.
I too would treat the software / licence as an expense.
If you're a small business I would also calculate the prepayment.
But if like Shaun the value is only small then I wouldn't do the prepayment as prepaying £5 is not worth it.
).
