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Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 8 years ago

Is an accounting software considered an equipment on a balance sheet?

or an office supply?

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  • Anonymous
    8 years ago
    Favorite Answer

    Neither.

    If the software is off the shelf (QuickBooks) then the price is immaterial and you would expense the purchase.

    Enterprise level software, such as Oracle / PeopleSoft would be booked as an asset and amortized according to specific FASB and IRS rules for software costs. Additionally, the company would capture other costs, such as the system integration and other components. Hope this helps, let me know if you have other questions.

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