We purchased our new license for Quickbooks this month, and I'm trying to determine if it should all be expensed now, classified as a prepaid expense, or classified as a fixed asset and depreciated? I believe the license is good for 3 years, however it has no residual value that I know of once purchased (eg if the business should close before that 3 years is up, the license can't be resold to recoup a portion of the expense). The amount of purchase is over our usual threshold for prepaid expenses/fixed assets. How have y'all been classifying this when purchased?
USA Is the cost of QuickBooks a prepaid expense? Fixed Asset?
- Thread starter Lauren W
- Start date