Domain accounting question- please help

[turtlepirate]

I know this is best let to my accountant but I wanted to know from someone with experience in selling domains.

 

I just started reselling domains and to me this seems to be a little more complicated than selling hosting, as far as accounting goes. Let's say I deposit $100 into Enom, as far as the bank account it comes from is concerned, that was an expense. But technically it wasn't because all I really did was move that money into another account. When I sell domains, I get reimbursed and eventually use up the funds. I'm just confused of whether I should record this in my accounting program as an expense. Do I record the entire $100 or do I record as each domain is sold? Or do I not need to bother recording anything at all but the income I'm receiving? I just feel like the deposit needs to be accounted for somehow, I think it would be confusing to look at my statement and forget where all these transactions are going.

[turtlepirate]

Now I'm wondering, would this be counted as Cost of Goods Sold?

[othellotech]

You dont deposit "money" to enom, you "buy" points which can be used for purchases, so yes, it's an expense/cost-of-sale, rather than an "account" as you cant get the money back.

[turtlepirate]

You dont deposit "money" to enom, you "buy" points which can be used for purchases, so yes, it's an expense/cost-of-sale, rather than an "account" as you cant get the money back.

 

Thanks othellotech, that's what I started to figure after I wrote everything down. It makes sense now.