I run a start up web design/development company thus for various reasons i have a number of domain names which do not relate to my current business, but are for domains I intend to build in the future. These domains obviously cost money to purchase and renew while the development is ongoing.
How do I classify these? Would they just be under general purchases? I didn’t think they would fall under Marketing or Advertising as they are not live sites, just the domain names themselves.
Any advice would be most welcome.
If the domain is for your business, then usually we suggest 7506 Hosting Fees & IT Consumables. For domains purchased on behalf of a client, 5000 General Purchases is usually best.
Note: I’m not an accountant
These are neither, these are domains purchased by myself (the company) on which I will build websites for the company in the future i.e sister websites of the company not relating to web design.
I.e. for expanding the company in the future into other areas.
It’s still a business expense, so I would put them under “7506 - Hosting Fees & IT Consumables”. Alternatively you can create a new nominal code if you want them distinguished on your accounting records.