SaaS

Contractor / Freelancer Invoice

Recording a development or design invoice from an external contractor.

Account NameTypeDebit ($)Credit ($)
R&D Expense — Contractor FeesExpense (+)4,500.00-
Accounts Payable (Contractor)Liability (+)-4,500.00

💡 Accountant's Note

Contractor costs are expensed in the period the work is performed. If the work results in a qualifying software development deliverable meeting capitalization criteria, it may be capitalized instead.

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