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Tagging illustration work

Hello

I paid an external company to make some illustrations for my company website. What would I tag this as? There is also a small service fee, what would I tag that as?

I will not be reselling the illustrations.

Thank You

Depends how much detail you want on your books. Most of my stuff other than large assets is just general purchases.

Can this not be tagged as a “Direct Expenses”. Maybe 6200 “Marketing and Sales Promotions” as our website is designed to boost sales?

Probably. But the fees included in the cost isn’t split. The cost is the cost.

The service fee is a separate line.

If you mean that the service fee was applied by the illustrator then you only need to record the total. The only real reason to split would be if one is subject to VAT and the other isn’t. If it is related to the website then I would regard it as an overhead rather than a direct expense but that really is no big deal either way.

I am assuming that the “service fee” is a one off. If it will be a recurring payment then that is another matter.

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