Expense Category
Human Resources

What expense category are background checks?

The answer to this question depends on the type of business you are running and the country in which you are based. In the United States, for example, there are different laws and regulations regarding background checks for businesses. As such, the answer to this question may vary depending on the specific business and location.

Background Checks for Employment

In the United States, businesses may run background checks on job applicants as part of the hiring process. The Equal Employment Opportunity Commission (EEOC) provides guidance on when and how employers can conduct background checks. In general, employers can only run background checks after making a job offer.

There are a few exceptions to this rule. For example, employers may be able to run background checks earlier in the hiring process if they are required by law or if they are necessary to protect the safety of employees, customers, or other individuals. Additionally, some employers may be able to run background checks as part of a voluntary pre-employment screening program.

Other Types of Background Checks

In addition to employment-related background checks, businesses may also need to conduct background checks for other purposes. For example, businesses that sell firearms may be required to run background checks on customers. Landlords may also need to run background checks on potential tenants.

There are also a number of other reasons why a business may need to conduct a background check. For example, a business may need to check the criminal history of an employee who will be working with vulnerable populations, such as children or the elderly. Additionally, a business may need to check the credit history of an employee who will be handling the finances of the company.

Ultimately, the category for background checks depends on the specific business and location. In the United States, businesses may need to conduct background checks for employment purposes or for other reasons. The specific laws and regulations regarding background checks vary by state and may change over time.

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.
Background checks
“Accurate classification of expenses is vital for businesses as it forms the backbone of financial reporting, tax compliance, and strategic decision-making. It enables businesses to track and analyze their spending patterns, identify cost-saving opportunities, and assess the profitability of various operations or projects. Having a single source to turn to for accounting classification suggestions, such as the Ramp Expense Classifier tool, is immensely helpful as it provides consistency, reduces ambiguity, and streamlines the expense classification process.”
Audrey Carroll
Senior Manager, Accounting, Ramp
Ramp logo and SandBoxx logo
Sandboxx Logo

“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

Tired of manually categorizing expenses? See how Ramp can automate this for you in the demo below

Experience the
Ramp advantage

Ramp is focused on maximizing your business' most precious resources: every minute and dollar.
Error Message
No personal credit checks or founder guarantee.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
1,850+ reviews