What expense category does Linear fall under?

When recording expenses for your business, it's important to categorize them correctly. Linear, a project management and issue-tracking software, falls under the software expense category. Accurately classifying this ensures clear financial records and effective budgeting.

Classifying Linear expenses

When categorizing Linear in your expense reports, consider the following options:

• Software expenses: As a cloud-based tool, Linear fits into your general software expenses.
• Project management tools: If you categorize software by function, place Linear under project management tools.
• Software as a Service (SaaS): Linear is a subscription-based service, so it can be classified under SaaS expenses.
• Developer tools: For companies focused on software development, you might list it as a developer tool.

Examples of Linear expenses

Here are some examples of how Linear expenses might appear in your financial records:

• Monthly subscription fee: The recurring cost for access to Linear's services.
• Annual subscription: If you've opted for an annual plan, record the lump sum payment accordingly.
• Team expansion costs: Increased fees as you add more team members to your Linear account.
• Integration services: Costs associated with integrating Linear with other tools or platforms.
• Training expenses: Fees for training sessions to help your team use Linear effectively.

For example, if your company pays $100 per month for Linear, you would record this as a software expense of $100 each month.

Tax implications of Linear expenses

Understanding the tax implications of your Linear expenses can help maximize deductions:

• Deductible business expense: Software subscriptions like Linear are generally considered ordinary and necessary business expenses, making them tax-deductible.
• Operating expense: Since it's a subscription service, Linear is typically treated as an operating expense, deductible in the year incurred.

Keep detailed records of all expenses related to Linear, including invoices and receipts, to substantiate your deductions. Tax regulations can vary, so it's wise to consult with a tax advisor to ensure you're handling these expenses correctly. Properly accounting for these expenses can lead to tax savings and more accurate financial reporting.

Let Ramp automate your expense process

Managing expenses like Linear doesn't have to be time-consuming. With Ramp, you can automate the categorization, tracking, and management of your software expenses. Ramp simplifies expense management, saves you time, and ensures accuracy in your financial records. Let Ramp handle the details so you can focus on growing your business.