Treatment for Domain Name Purchases in Accounting

R Dilip Kumar (Owner) (23 Points)

06 August 2020  

Hi,

I run an affiliate marketing business, meaning I earn by selling affiliate products that pay me a commission. For this purpose I use websites that I build and then I upload content onto it.

From an accounting perspective, how will I treat my purchases related to Domain Names. I was told by somebody that it needs to be accounted as an "intangible asset".

Should it be an asset or, an expense?