What expense category does Carta fall under?
Audrey Carroll, Senior Manager, Accounting, RampSee how Ramp automates accounting for 25k+ businesses
Answer
Carta falls under the 'Software' expense category, specifically in the 'Equity Management and Financial Analysis Software' subcategory.
Role of the Expense in Business
Carta is utilized for managing company equity, handling cap tables, and conducting financial analysis, making it a vital tool for startups and private companies in managing their equity and financial data.
Practical Example
A startup using Carta for cap table management and equity distribution categorizes these expenses under 'Equity Management and Financial Analysis Software'.
Specialized Expense
In cases where Carta is used for occasional financial analysis or small-scale equity management, it might be categorized under 'General Financial Tools'.
Conclusion
Carta's specialization in equity management and financial analysis secures its place within the 'Software' expense category, particularly for financial analysis and equity management.
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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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