Questions & AnswersRecord Website Setup Costs In Your Business Tracking Software
funzeye asked 8 years ago

Q: Record Website Setup Costs In Your Business Tracking Software?

I run a web design & development company.
For each client we generally go and pay for the domain and hosting costs ourselves during development of the site (using an employee credit card).
We then pass on that cost to the client as part of the final invoice and pay that employee back the expense.
How would we best record this? It makes sense to me to see these costs as “Cost of Sales” type items.
I was just going to create a couple of new accounts and call them Domain Name(Client) and Hosting(Client), but I don’t know what account type to put them under – I am assuming Expense->Direct Costs? Does that make sense?
That way when I go to pay the expense to the employee it gets recorded as a direct cost, or should I just have it as a general expense seeing as it was the employee who paid for it and not the company itself :/ ?