Where to Record Software Cost

"GTS-NJ" wrote

You have two choices, sorta.

If the software that is purchased is expected to have a life greater than one year, it's a capital asset and depreciated accordingly. Software is generally three year property.

If the software is something that has a life of a year then it's expensed in the current year.

Different rules apply for software that is self-developed for in-house use or developed for retail sale (as in you are a software developer, think Microsoft).

Thanks. I found that information readily. I was trying to figure out how to enter it in QB.