Expense Category

What expense category does dry cleaning come under?

Dry cleaning can come under a few different expense categories, depending on the business. Typically, dry cleaning would come under the 'operational expenses' category, as it is a necessary cost for the business to function. However, it could also come under 'marketing expenses', if the business uses dry cleaning as a way to promote their brand or product (for example, by giving away free dry cleaning vouchers).

Another possibility is that dry cleaning could come under 'admin expenses', if the business employs someone specifically to deal with the dry cleaning (for example, if they have a lot of employees who need to wear uniforms that need to be regularly dry cleaned).

Ultimately, it is up to the business owner or finance team to decide which expense category is most appropriate for dry cleaning.

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.
“Accurate classification of expenses is vital for businesses as it forms the backbone of financial reporting, tax compliance, and strategic decision-making. It enables businesses to track and analyze their spending patterns, identify cost-saving opportunities, and assess the profitability of various operations or projects. Having a single source to turn to for accounting classification suggestions, such as the Ramp Expense Classifier tool, is immensely helpful as it provides consistency, reduces ambiguity, and streamlines the expense classification process.”
Audrey Carroll
Senior Manager, Accounting, Ramp

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