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 :/ ?

1 answer

Peter Connor Staff April 28, 2014

Hi Funzeye!
Ok there are a couple of things here.
Line Items
So if you’re creating recurring items like hosting etc, you can use our line items to speed that up. I’ve created a little animation for you here 

How to create invoice line item in Bullet free online invoice template

How to create invoice line item in Bullet free online invoice template

If you’re using an employee’s credit card then just go through the standard ‘Add A Bill’ process and just select the employee’s name from the drop down this will do the following things for you.
– It will manage how it’s to be handled in our accounts
– It will manage all the vat and tax issues
– It will add it into your employees next wage payment 
all automatically for you, so you don’t need to worry. 
Hope that helps 

  1. funzeye April 28, 2014
    The invoice line items make sense.
    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?
  2. Peter Connor April 29, 2014

    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.

  3. funzeye April 30, 2014
    okay thanks, appreciate the help!
  4. Peter Connor April 30, 2014
    No problem. Any other Q's shoot them upski.

    Have a good Wednesday

Please login or Register to Submit Answer