What expense category does Carta fall under?

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.