What expense category is maintenance?

There is no definitive answer to this question as it will depend on the specifics of your business and how you categorize your expenses. However, we can provide some guidance on which expense category is most likely to be appropriate for maintenance.

Operating Expenses

One possibility is that maintenance falls under the category of operating expenses. Operating expenses are those that are necessary to keep the business running, and they can include things like rent, utilities, and payroll. Maintenance would likely be considered an operating expense if it is required to keep the business operational, such as repairing equipment or maintaining facilities.

Capital Expenditures

Another possibility is that maintenance is classified as a capital expenditure. Capital expenditures are typically larger expenses that are made to improve the business, such as buying new equipment or expanding the facilities. Maintenance could be considered a capital expenditure if it is made with the intention of improving the business, such as upgrading equipment or renovating the premises.

Other Expenses

There are other potential expense categories that maintenance could fall under, depending on the specifics of the situation. For example, if the maintenance is being done on a vehicle, it could be classified as a transportation expense. If the maintenance is being done on inventory, it could be classified as a cost of goods sold. Ultimately, the correct expense category for maintenance will depend on the specific details of the situation.

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.

Let Ramp automate your expense categorizations

Error Message
No personal credit checks or founder guarantee
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Tired of manually categorizing expenses? See how Ramp can automate this for you in the demo below