What expense category does CPA work come under?
There is no definitive answer to this question as it will depend on the specific work being undertaken by the CPA and the business owner or finance team's preference. However, some possible expense categories for CPA work include:
This is a broad category that could encompass the CPA's fees for preparing and filing taxes, as well as any other advice or consulting services they provide. If the CPA is working as an independent contractor, their fees may also be classified as professional services.
Accounting & Bookkeeping
This category would cover any work the CPA does in relation to the business's financial records, such as preparing financial statements or reviewing transactions. It could also include any software or subscription fees associated with accounting and bookkeeping.
This category would encompass any fees related to tax preparation, filing, and advice. This could include state and federal taxes, as well as any other taxes that may be relevant to the business.
This catch-all category could be used for any CPA work that doesn't fit neatly into one of the other categories. For example, if the CPA provides advice on business strategy or helps with human resources, their fees could be classified as "other".
Ultimately, it's up to the business owner or finance team to decide which expense category is most appropriate for the CPA's work. Depending on the nature of the work, multiple categories may be used. For example, if the CPA provides both tax preparation and bookkeeping services, their fees could be split between the "taxes" and "accounting & bookkeeping" categories.