What expense category does LinkedIn Sales Navigator fall under?

Audrey CarrollAudrey Carroll, Senior Manager, Accounting, Ramp

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LinkedIn Sales Navigator is a key tool for sales teams, but how should you categorize its cost? Knowing the right expense category for LinkedIn Sales Navigator helps keep your financial records accurate and your budgeting on point.

Classifying LinkedIn Sales Navigator expenses

LinkedIn Sales Navigator typically falls under the software expense category. More specifically, you can classify it as:

  • Sales prospecting and social selling software
  • Software as a Service (SaaS) expenses
  • License and subscription fees

Choosing the right subcategory depends on how your organization uses the tool. If it's central to your sales strategy, Sales prospecting and social selling software is appropriate. For general networking purposes, consider General networking tools.

Examples of LinkedIn Sales Navigator expenses

Here are some examples of how LinkedIn Sales Navigator expenses might appear:

  • Monthly or annual subscription fees: For LinkedIn Sales Navigator Team or Enterprise plans.
  • Additional licenses: Purchased for new sales team members.
  • Upgrades: Upgrading to higher-tier plans for enhanced features.
  • Training costs: Costs associated with onboarding staff to use the platform.

For instance, if your company subscribes to LinkedIn Sales Navigator Team at $134.99 per user per month, this recurring cost would be categorized under subscription fees in your expense tracking.

Tax implications of LinkedIn Sales Navigator

When it comes to taxes, properly categorizing LinkedIn Sales Navigator expenses can have benefits:

  • Deductible business expense: As a necessary cost for sales and networking, these expenses are typically tax-deductible.
  • Capital expenses: If you pay for a multi-year LinkedIn Sales Navigator subscription, the cost may be considered a capital expense, which would need to be depreciated over the life of the subscription instead of being deducted in full in the year of purchase.

Keep detailed records of all subscription fees and related costs. Ensure expenses are classified consistently for accurate financial reporting. You can also check with a tax advisor to understand how these expenses apply to your specific situation. Accurate categorization helps in maximizing deductions and maintaining compliance.

Let Ramp automate your expense process

Managing expenses like LinkedIn Sales Navigator doesn't have to be a manual task. Ramp can automate the categorization, tracking, and management of these expenses. With customizable categories and real-time tracking, Ramp simplifies your expense process, helping you stay on top of your finances effortlessly.

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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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