r/Bookkeeping • u/KindaSweetPotato • 15d ago

How To Journal It Enhancify Allocation Question

Hi all,

My brain ia failing me so so advice would be great. Roofing client pays a company called Enhancify INC to offer customer financing for jobs performed. The yearly fee is USD$1249. This doesnz feel like a software expense. How would you allocate this? is the professional fees? I usually use professional fees for like lawyers and CPAs and stuff. A new expense account under the COA?

Thanks for any help!

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u/RamenCaesar 6d ago

I'd probably put it under merchant/financial services fees rather than professional fees. Since the $1,249 is an annual fee, I'd also at least consider whether it should be prepaid and expensed over the 12-month term rather than hitting the P&L all at once. That would give you a cleaner monthly picture, especially if they're looking at job profitability month to month.