What expense category does Amazon Web Services (AWS) fall under?
Audrey Carroll, Senior Manager, Accounting, RampSee how Ramp automates accounting for 25k+ businesses
Answer
Amazon Web Services (AWS) primarily falls under the 'Software' expense category, specifically within subcategories like 'Cloud Computing Services', 'Data Storage and Management', and 'IT Infrastructure Software'.
Role of the Expense in Business
AWS offers a range of cloud-based services crucial for various business operations, including hosting applications, managing data, and providing IT infrastructure solutions.
Practical Example
A tech company using AWS for hosting its web applications categorizes these expenses under 'IT Infrastructure Software'. An analytics firm using AWS for data storage and analysis places these costs under 'Data Storage and Management Software'.
Specialized Expense
For a small business using AWS for basic web hosting, it might be more appropriate under a general 'Web Services' subcategory.
Conclusion
In summary, AWS is predominantly categorized under the 'Software' expense category, with its diverse applications dictating more specific subcategories.
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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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