Expense Category
Equipment
What expense category does equipment rental fall under for a landscaping business?
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There are a few different ways to categorize expenses for a landscaping business, and equipment rental could fall under a few different categories. The most common categories for expenses are:

  • Operating expenses: These are the costs of running the business, including rent, utilities, insurance, and office supplies.
  • Direct costs: These are the costs associated with providing the services offered by the business, including materials, labor, and equipment.
  • Indirect costs: These are the costs that are not directly related to providing services, but are necessary for the business to function, including marketing and administrative expenses.

In terms of equipment rental, it could fall under either direct or indirect costs. If the equipment is necessary for the business to provide its services, then it would be considered a direct cost. If the equipment is not necessary for the business to provide its services, but is still necessary for the business to function, then it would be considered an indirect cost.

The best way to determine which category is most appropriate for equipment rental is to speak with an accountant or financial advisor. They will be able to help you categorize your expenses in the most effective way for your business.

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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.

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