I need help with choosing the right account to enter this purchase. I purchased a software for my printer I use in my business. Do I enter it as an Expense or Fixed Asset? The items listed below are my options/ or should I just create another account ?
It's a pleasure to see you here in the Community. I'm by no means an accounting professional, but I do have some insight and resources to provide that can help get you on the right track.
Computer software can be considered as a long term asset that falls under fixed assets like buildings and land. That said, you could enter the software you purchased using a Fixed Asset account.
However, please be sure to reach out to an accounting consultant to ensure this is the best suit for your business. With Intuit's Find-A-ProAdvisor site, you can search for certified professionals in proximity to your ZIP code that can discuss options more personal to your business's needs.
That should get you going in the right direction. Keep in touch if there's anything else I can help you with. Thanks for reaching out, wishing you and your business all the best!
You should review this with your own CPA. No one on the internet can answer this for you.
Something you pay for Annually = Expense.
It also matters if you bought it outright, have a Subscription or a License period. And the Amount matters. Example: you buy a new QB for $250 = Expense. You buy the latest Office = Expense; or you Pay annually for Office 365 = Expense.
Or, you bought a $15,000 software package to control a computerized large format printer = Other Asset to be amortized (expense taken over time).