What expense category does Docusign fall under?

Using digital tools like Docusign streamlines your document management, but how should you categorize its expenses? Knowing where Docusign costs fall helps maintain accurate financial records and supports better budgeting.

Classifying Docusign expenses

Docusign expenses generally fall under the software category. Key ways to classify these costs include:

• Document management and e-signature software: This reflects Docusign's primary role in handling digital documents and signatures.
• Department-specific software: If your legal team primarily uses Docusign, you might categorize expenses here. Costs could be allocated accordingly for sales teams using Docusign to close deals faster.

Examples of Docusign expenses

Common expenses associated with Docusign include:

• Subscription fees: Regular payments based on your chosen plan and number of users.
• Integration costs: Expenses for integrating Docusign with your existing systems or software.
• Training expenses: Costs for employee training sessions to effectively use Docusign.
• Support and maintenance fees: Charges for additional support services or premium features.

For example, subscribing to Docusign's Business Pro plan at $40 per user per month would be a recurring software expense.

Tax implications of Docusign expenses

Understanding how Docusign expenses affect your taxes can be beneficial:

• Deductible business expenses: Docusign costs are generally deductible as ordinary business expenses.
• Capitalizing on subscription costs: If you pay annual subscription fees for Docusign, you can capitalize on these costs and amortize them over the subscription period. Significant upfront costs might need to be amortized over the software's useful life.

Proper classification is essential, so record these expenses under software or technology expenses in your accounting system. Consult with a tax professional to ensure you're following the latest tax regulations. Accurate recording can reduce your taxable income and ensure compliance with tax laws.

Let Ramp automate your expense process

Managing expenses like Docusign doesn't have to be time-consuming. Ramp automates the categorization, tracking, and management of these costs, giving you real-time insights and reducing manual work. Focus on growing your business while Ramp handles the expense details seamlessly.