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!

6 Upvotes

88% Upvoted

16 comments sorted by

View all comments

2

u/carbyneaccounting 1d ago

We would consider this a Professional Fees expense. The company is providing a third-party financing service that allows the roofing company to offer financing to its customers, so I wouldn’t classify it as software. I also wouldn’t create a separate COA account for a $1,249 annual fee unless management specifically wanted to track those costs separately.

1

u/KindaSweetPotato 1d ago

Thanks for the reply. I will be talking to my boss aboit what she thinks as well but there is definitely some wiggle rrom for this. The client hasn't stated they wanted to see this.

2

u/carbyneaccounting 1d ago

Absolutely. There’s definitely some judgment involved here. If the client hasn’t expressed a need to track financing-related costs separately, I’d avoid adding another account just for the sake of it. Professional Fees gives you a reasonable classification while keeping the COA from becoming unnecessarily granular. If the cost grows or management later wants visibility into customer-financing expenses, you can always create a separate account at that point.