USA Is the cost of QuickBooks a prepaid expense? Fixed Asset?


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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?
 
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kirby

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We book under "Fixed Assets- Software" and depreciate it fully. In your case, term would be 3 years and straightline method.
 

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