What expense category does Github fall under?

Keeping track of software expenses like GitHub can be a bit confusing. Is it a software subscription, a development tool, or something else? Let's break down where GitHub fits in your expense categories.

Classifying GitHub expenses

Determining how to categorize your GitHub expenses helps keep your financial records accurate. Here are the main categories where GitHub expenses typically fall:

• Software subscriptions: If you're paying for GitHub on a recurring basis, you might classify it as a software subscription.
• Development tools: When your team uses GitHub primarily for code development and collaboration, it can be categorized under development tools.
• Cloud services: If you leverage GitHub's cloud-based features, you might record it as a cloud service expense.

Examples of GitHub expenses

Here are some examples of how you might categorize GitHub expenses:

• Software subscriptions: A startup subscribes to GitHub's Team Plan to manage code repositories, categorizing the expense under software subscriptions.
• Development tools: A software company uses GitHub Enterprise for advanced development work, recording it as a development tool expense.
• Cloud services: An organization uses GitHub's cloud features for deployment and continuous integration, classifying it under cloud services.

For instance, if you subscribe to GitHub's Team Plan at $4 per user per month, you'd record this as a software subscription expense.

Tax implications of GitHub expenses

Understanding the tax implications of your GitHub expenses can help you at tax time. Consider the following:

• Deductible expenses: If GitHub is necessary for your business operations, you can typically deduct these expenses on your taxes.
• Capital expenses: If you pay for a GitHub subscription or services that provide long-term benefits (e.g., more than one year), these costs may be considered capital expenses, which would need to be depreciated over their useful life instead of being deducted in full in the year of purchase.

Recording GitHub expenses under the correct category ensures compliance and makes tax filing smoother. Since tax rules can vary, you can also consult with a tax professional to see how these expenses affect your situation.

Let Ramp automate your expense process

Managing and categorizing expenses like GitHub doesn't have to be a headache. Ramp can automate your expense tracking, ensuring that subscriptions and software costs are recorded accurately. With Ramp, you get real-time insights and streamlined accounting, so you can focus on growing your business.