Expense Category

What expense category is advertising?

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There is no definitive answer to this question, as the expense category for advertising can vary depending on the business and the accounting method used. However, some common expense categories for advertising include:

  • Marketing and Promotions: This is a common expense category for advertising, as it includes the costs of marketing and promotion activities. This can include things like print and online advertising, as well as events and sponsorships.
  • Sales: Another common expense category for advertising is sales. This includes the costs of advertising that is specifically geared towards generating sales, such as online ads, print ads, and TV commercials.
  • General and Administrative: Another possibility is that advertising expenses are categorized as general and administrative expenses. This is because advertising can be considered a necessary overhead cost for many businesses.

Ultimately, the best way to determine which expense category is correct for your business is to speak with your accountant or financial advisor. They will be able to help you determine which method is best for your business and ensure that your expenses are properly categorized.

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As we scale we need tools that are built to scale with us - we need to see expenses real time, we need to see duplicate spend. These types of insights are important to the health of our business.
Steve Padis, SVP Finance & Strategy, Barry's
The information provided in this article does not constitute legal or financial advice and is for general informational purposes only. Please check with an attorney or financial advisor to obtain advice with respect to the content of this article.

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