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    szahm's Avatar
    szahm Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 19, 2007, 10:12 AM
    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
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Jan 20, 2007, 07:51 PM
    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.
    cynabin's Avatar
    cynabin Posts: 2, Reputation: 1
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    #3

    Jan 31, 2007, 12:23 PM
    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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