Expense Category
Professional Services

What expense category is contract labor?

Search for an expense to categorize
See how Ramp automates accounting for 25k+ businesses
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

There is no definitive answer to this question, as the correct expense category for contract labor will depend on the specific business and situation. However, some possible expense categories for contract labor include:

Operating Expenses

Contract labor can generally be classified as an operating expense. This is because it is typically incurred in the course of running the business, and is not considered a capital expenditure. Operating expenses are typically charged to the income statement, and so contract labor would usually be included in this category.

Personnel Expenses

Another possible category for contract labor is personnel expenses. This is because contract labor is typically used to fill roles that would otherwise be filled by employees. As such, it can be seen as a form of employee compensation. Personnel expenses are typically charged to the income statement, and so contract labor would usually be included in this category.

Other Expenses

Another possible category for contract labor is other expenses. This is because contract labor can be used for a variety of purposes, and so it may not fit neatly into any other category. Other expenses are typically charged to the income statement, and so contract labor would usually be included in this category.

In general, there is no specifc answer to which expense category is correct for contract labor. The correct category will depend on the specific business and situation.

See how Ramp automates
accounting and more
Error Message
No personal credit checks or founder guarantee.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
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.

Learn more about our Expense Management solution here.

Take a tour of Ramp

4.8 stars
1,900+ reviews