Budget for items paid every 3 years

Started by SusanH31 • 3 replies • 323 views

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SusanH31 (North Carolina)
Posts: 69

Posted:

My self-managed HOA paid $428 for a 3-year subscription to QuickBooks Desktop in April, and we can use the software until 2024. Should I put money in the 2022, 2023, and 2024 operating budgets to collect monthly and "save up" for when we have to pay to renew QuickBooks in 3 years? ...or should this go into the Reserve accounting, along with roof replacement and other big ticket items that only require expenditures every N years? ...or should it appear in the 2024 operating budget and not the 2022 or 2023 budgets?

It seems like small potatoes for the big Reserve fund, but I don't have a solid reason for choosing one way or another. I'm still new and learning -- thanks for your help!

PatJ1 (North Carolina)
Posts: 568

Posted:

A subscription to Quickbooks is not an Reserve item. I would just record it in the year that it renews as a General Expense. It's such a small amount, it doesn't need it's own line item in the budget.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Yes, a multiple year subscription will show as an expense for one year, then on renewal years. I do with this with our community website.

SusanH31 (North Carolina)
Posts: 69

Posted:

Thanks for the help!

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