What expense category do highlighters come under?

When sorting through office expenses, you might wonder where items like highlighters fit into your accounting records. Properly categorizing these everyday items can simplify your financial tracking and ensure accurate reporting.

Classifying highlighter expenses

Highlighters typically fit into these expense categories:

• Office supplies: Everyday items used in the office, such as pens, paper, and highlighters.
• Stationery: Writing and note-taking items, including highlighters, notebooks, and sticky notes.

Examples of highlighter expenses

Which category you choose depends on your business practices. The key is to be consistent in how you classify these expenses to keep your records clear. Examples of activities where highlighters are extensively used include:

• Annotating documents: Team members use highlighters to mark important sections in reports or contracts.
• Training materials: Highlighting key information in manuals for employee training sessions.
• Planning and organizing: Using different colors to prioritize tasks on planners or calendars.

For instance, if your company buys a pack of highlighters for $15 to distribute among staff for meeting and collaboration purposes, then this can be categorized under office supplies expenses.

Tax implications of highlighter expenses

Understanding how to categorize highlighters can have tax benefits:

• Tax deductions: Office supplies are generally tax-deductible as ordinary business expenses.
• Non-deductible expenses: Highlighters purchased for personal use or as gifts for employees are not eligible for tax deductions, as they do not qualify as ordinary business expenses.

Proper categorization ensures your financial statements reflect true operating costs, and keeping detailed records helps avoid issues during tax time. Always record purchases like highlighters under the appropriate category and retain receipts to maximize deductions and maintain compliance.

Let Ramp automate your expense process

Managing expenses like highlighters doesn't have to be a manual task. Ramp automates expense categorization and tracking, ensuring every office supply is accurately recorded. With Ramp, you can streamline expense management, save time, and focus on what really matters—running your business.