Can website design be capitalized?
In general, website design costs may be capitalized if they meet the criteria for capitalization set forth by accounting standards. Capitalizing means that the costs are recorded as assets on the company’s balance sheet and are then amortized or depreciated over time.
Yes, website design can be capitalized. In accounting, website design expenses can be treated as an investment and recorded as assets on the balance sheet, a process known as capitalization. This allows the costs to be spread out over time rather than being immediately expensed.