What expense category does Ingram Micro fall under?

If you're using Ingram Micro for IT products and services, you might wonder how to categorize these expenses. Properly classifying costs associated with Ingram Micro helps keep your financial records accurate and your expense management straightforward.

Classifying Ingram Micro expenses

Expenses related to Ingram Micro can fall into several categories, depending on how your business interacts with them:

• Cost of goods sold (COGS): If you're purchasing products from Ingram Micro to sell to your customers, these costs are part of your COGS.
• Operating expenses: Costs like technology services, software subscriptions, or support services from Ingram Micro can be considered operating expenses.
• Logistics and distribution costs: If you're incurring shipping fees or warehousing costs through Ingram Micro, these fall under logistics and distribution expenses.
• Technology and IT expenses: Expenses for IT infrastructure, software solutions, or cloud services provided by Ingram Micro fit here.

Examples of Ingram Micro expenses

To make it clearer, here are some examples of expenses you might have with Ingram Micro:

• Purchasing laptops or hardware for resale (COGS).
• Subscribing to cloud services or software licenses (operating expenses).
• Paying for shipping and handling when ordering products (logistics and distribution costs).
• Investing in IT infrastructure or support services for your own operations (technology and IT expenses).

For instance, if you buy 50 monitors from Ingram Micro to stock your retail store, the cost of these monitors would be recorded under COGS.

Tax implications of Ingram Micro expenses

When it comes to taxes, properly categorizing your Ingram Micro expenses can affect deductions:

• Deductible expenses: Costs of products purchased for resale can reduce your taxable income. Operating expenses like software subscriptions and IT services are also typically deductible as business expenses.
• Capital expenses: Large equipment purchases may need to be depreciated over time rather than expensed immediately.

Accurate categorization is important for tax compliance and aligning with IRS regulations. Consulting with a tax professional can help ensure you're maximizing deductions and staying compliant.

Let Ramp automate your expense process

Managing expenses can be time-consuming, but Ramp can simplify the process. With Ramp, you can automate expense categorization, tracking, and management for all your Ingram Micro transactions. Save time and reduce errors by letting Ramp handle the details, so you can focus on growing your business.