What expense category does employee recruitment fall under?

There are a few different ways to categorize the expense of employee recruitment. It could be considered a part of the human resources budget, since it is related to hiring and onboarding new employees. It could also be classified as a marketing expense, since it is a way to reach potential new hires and promote the company as an employer. Finally, it could be considered a general and administrative expense, since it is necessary for the running of the business.

Which category is the most accurate depends on the company's accounting practices and the specific details of the recruitment expense. For example, if the company hires a third-party recruiting firm, that expense would likely be classified as marketing. If the company pays for employee referral bonuses, that expense would likely be classified as human resources. If the company pays for ads on job boards or other online platforms, that expense could be classified as marketing or general and administrative.

The most important thing is to be consistent in how the expense is categorized so that it is accurately reflected in the company's financial statements. If there is any doubt, it is best to consult with a accountant or financial advisor to ensure the expense is properly categorized.

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.

Let Ramp automate your expense categorizations

Error Message
No personal credit checks or founder guarantee
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Tired of manually categorizing expenses? See how Ramp can automate this for you in the demo below