Entrepreneurship & Small Business

Can accounting software be considered an "Accounting Fee" or a "Supplies" expense?

  • Last Updated:
  • Jan 23rd, 2012 11:07 pm
[OP]
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Jul 14, 2008
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Can accounting software be considered an "Accounting Fee" or a "Supplies" expense?

Hi there, I'm trying to log this software down, I purchased Quicken Home Business and I'm trying to determine if it could be considered an Accounting Fee, or a Supplies expense; which would be best suited for this?

Thanks!
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[OP]
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Jul 14, 2008
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I decided to call it an Accounting Fee, as the the description for that Line Item says:

"You can deduct accounting and legal fees you incur to get advice and help in keeping your records. You can also deduct fees you incur for preparing and filing your income tax and GST/HST returns."
Quicken was a fee I incured for preparing and filing my income tax return; without it I couldn't properly prepare for the return. Anyone feel my interpretation is
sufficient?

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/ ... 0-eng.html
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Aug 17, 2011
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CALGARY
Office expense.

You are generally supposed capitalize it, but for an $80 expense it's not worth splitting hairs over. Accounting fees/legal fees/professional fees are generally just that: professional fees. Not software.

However, all that being said, for an immaterial transaction like that, it really doesn't matter where it goes, just as long as it makes sense to you.
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Jul 4, 2005
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Markham
it could also be a class 12 100% CCA, computer software
Deal Addict
Aug 31, 2010
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nX07 wrote:
Jan 19th, 2012 10:27 am
I decided to call it an Accounting Fee, as the the description for that Line Item says:

"You can deduct accounting and legal fees you incur to get advice and help in keeping your records. You can also deduct fees you incur for preparing and filing your income tax and GST/HST returns."
Quicken was a fee I incured for preparing and filing my income tax return; without it I couldn't properly prepare for the return. Anyone feel my interpretation is
sufficient?

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/ ... 0-eng.html
It's not an accounting fee. Accounting fees fall under professional fees, which are service-based.

The line you bolded is costs to prepare, e.g.. if you hired an accountant. The software itself is technically a class 12 asset, or an office/computer expense if you don't care to set it up on schedule T2Sch8.
[OP]
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Jul 14, 2008
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Ah I see, thank you everyone for your insights!

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