A credible Website and Marketing materials will add value to your business and could be vital in your company’s sales value. Did you know that your website can be treated as a tangible or intangible fixed asset?
For year ends December 2015 & onwards there’s a new set of accounting rules FRS 102 replacing the old rules - if you’ve recently bought or are developing a new website for yourself you need to get your accountant to look carefully at how those costs get treated.
There is no reason for the costs of building a website to hurt your bottom line (unless you want them to!)…a bought website can be capitalised as an Intangible Asset… an internally built website can be Tangible or Intangible.
As the ACCA say… FRS 102 leaves it up to you and your accountant to develop a suitable accounting policy. Website costs can be spread over their lifetime and not just put through your accounts as a one off cost. They can be treated as an asset and depreciated over an allocated lifespan.