Comment by Spivak
6 months ago
The answer is that it's an operational experience when it's a salaried employee and a capital expense when it's a contractor. Like not in a theoretical sense, this is how it's classified right now.
6 months ago
The answer is that it's an operational experience when it's a salaried employee and a capital expense when it's a contractor. Like not in a theoretical sense, this is how it's classified right now.
Source?
Consider a contractor in a software maintainer role; accounting for this as capex makes zero sense.
It's how they're classified at $dayjob. It doesn't matter what they do, it matters that their contract is a fixed expense rather than an ongoing one.
That's probably something they are doing wrong then.