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Post Info TOPIC: Cost Classification


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Hi,

I am wondering if Microsoft Office 365 License and Google for Work should be classified as a general expenses/ subscription or computer expenses?

 

Many thanks,

Anna



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For Google I assume that you are talking about adwords in which case put to marketing costs

As software does not fit neatly with other computer expenses I have a seperate expense classification for software with computer expenses categorisation being non capitalised hardware (i.e. network cables),

The more segregation of expenses you have the better your management reporting will be.

HTH,

Shaun.

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Shaun

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Google Drive for Work is a cloud storage for files, folders, backups. 

 In my opinion should not be classified as advertising/ marketing costs.



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Shaun did only indicate marketing if it was adwords as your original question didnt expand on what that element was for.

Assuming of course that google drive is being used wholly and exclusively for the business then set up a code as he suggests to dump that into as well as your 365 software costs into.

Call it computer expenses - software subs ( as opposed to one off software purchases which might provide usage/access for several years) or just computer software - up to you. Point is, the cost categories need to reflect both what the specific business does, what the cost of such software is providing to that business and analysis via the management accounts. For example - a company may spend £100,000 on software for their business, so dumping it into 'general' really wouldnt be appropriate.

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 Joanne 

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Anna88 wrote:

Google Drive for Work is a cloud storage for files, folders, backups. 

 In my opinion should not be classified as advertising/ marketing costs.


A rather cheeky response don't you think  when people give their time to attempt to help you.

As Joanne indicates, you did not state that you were talking about Google drive but rather left readers to make up their own minds which is why I prefixed my response with an assumption.

For someone who only asks questions rather than answering any you might want to amend your attitude or you will rapidly find your questions either going unanswered or lose the ability to ask them at all on this site.



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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.



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Would I be right in saying you are a business owner Anna? Rather than a bookkeeper/Accountant with your own clients?

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 Joanne 

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Thank you for your help. I really appreciate it.

 



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OMG Shaun and Joanne, excellent responses.

Some manners and appreciation will always go a long way when you are in need of help :)

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Julie Johnson

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Anna88 wrote:

Thank you for your help. I really appreciate it.

 


Hi Anna

I do recall asking you for an intro when you first started using the site and if you have perused other posts you will see that we do this for all new people, but I can see we never had an update from yourself.   It certainly helps when posting responses so that such can be pitched at the right level or everyone can consider the wider audience.  So I for one would appreciate an answer to my question posted today please.  I appreciate the thanks.  (hint - might be worth an apology to Shaun as he gives his time for free on here, as we all do, but you can see by the number of posts he has done and the quality of his posts that he goes above and beyond to help people in his spare time as well as running his own business!)

 



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



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Haymac wrote:

OMG Shaun and Joanne, excellent responses.

Some manners and appreciation will always go a long way when you are in need of help :)


 Thanks for the support Julie.  Totally agree and lets face it we all need help from time to time.  biggrin



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



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Haymac wrote:

OMG Shaun and Joanne, excellent responses.

Some manners and appreciation will always go a long way when you are in need of help :)


Well, someone just won pole position in whose questions get answered first by Joanne or myself.

Many thanks for the support Julie, it's really appreciated.  biggrin

 



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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.



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I like Shaun's approach - the more detail the better. Agree with Joanne too. Again it is one of materiality, if it is relevant, segregate it to its own account. If it is tiny - general expenses. My opinion :p

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bk


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I can say the level of support on this site is fantastic. Especially when you are working on your own, it's great to be able to bounce ideas. I don't tend to answer half as many questions,as I'd like, but that's a time thing. By the time I get round to reading questions they've already been answered. Thanks to everyone who has offered support. Much appreciated.
Debbie

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Debbie Brown-Kane

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