Is Website Development an Asset or Expense
In today’s digital-first world, a business without a website is like a shop with no…
Yes, it can be—if it brings long-term economic value. Website development is considered a fixed asset when it involves custom coding, supports critical operations, and has a useful life beyond one year. For example, an eCommerce website or a CRM-integrated portal developed by experts like Ample Websol qualifies as a capital asset. As per accounting standards, only development-phase costs are capitalized. Planning and maintenance are treated as expenses. Classifying your website correctly ensures compliance and tax efficiency.
