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Home > Business & Careers > Accounting   »   Is software a fixed asset

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Old Jan 19, 2007, 08:12 AM
szahm
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Is software a fixed asset
Hi:

I have a promotional products company and I use graphics software for the business. Is software like this a fixed asset or an inventory (non-sale) item? thank you

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Old Jan 20, 2007, 05:51 PM   #2  
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You can put it under Fixed Assets, under “Computer hardware and software” or another account name of your choice.

A Fixed Asset is an asset that is used to produce income AND is not expected to be consumed or converted to cash within 1 year.

Inventory is merchandise intended for sale.

Since this software is a non-sale item, it is definitely not inventory.
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Old Jan 31, 2007, 10:23 AM   #3  
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Normally you would expense software anot put it as an asset because software is regularly updated and more advanced software comes out therefore it is not something you would depreciate
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