Record Website Setup Costs In Your Business Tracking Software
Q: Record Website Setup Costs In Your Business Tracking Software?
I run a web design & development company.
For each client we generally go and pay for the domain and hosting costs ourselves during development of the site (using an employee credit card).
We then pass on that cost to the client as part of the final invoice and pay that employee back the expense.
How would we best record this? It makes sense to me to see these costs as “Cost of Sales” type items.
I was just going to create a couple of new accounts and call them Domain Name(Client) and Hosting(Client), but I don’t know what account type to put them under – I am assuming Expense->Direct Costs? Does that make sense?
That way when I go to pay the expense to the employee it gets recorded as a direct cost, or should I just have it as a general expense seeing as it was the employee who paid for it and not the company itself :/ ?
However, when I go to 'add a bill/expense' -> 'I got a bill/ I bought something' and I choose the employee name, I still need to choose a category - i.e. something from the chart of accounts. The line items don't show up in the list. So should I also add this 'Hosting' item to the chart of accounts also, and if so do I put it under expense or direct costs?
Sorry this missed my radar. It's really up to you, it's just a company expense I wouldn't be to worried about it, as it's such a small amount.
Pete
Have a good Wednesday