What expense category is office cleaning?

Office cleaning is essential for maintaining a professional and healthy work environment. But when it comes to accounting, what expense category does office cleaning fall under? We will break down the different expense categories for office cleaning, provide examples, and discuss the tax implications. 

Classifying office cleaning expenses

Office cleaning expenses can typically be classified under a few main categories, depending on your accounting practices:

• Operating expenses: These are costs necessary for the day-to-day operation of your business. Since a clean office is essential for daily activities, many businesses categorize cleaning expenses here.
• Maintenance and repairs: If you own your office space, you might classify cleaning under maintenance and repairs, which includes costs associated with keeping the property in good condition.
• Cleaning and janitorial services: Some businesses have a specific category for cleaning and janitorial services, covering professional cleaning fees, equipment, and supplies.

Examples of office cleaning expenses

Here are some common examples of office cleaning expenses:

• Professional cleaning services: Fees paid to a cleaning company for regular office cleaning.
• Cleaning supplies: Purchases of cleaning products like detergents, disinfectants, and paper towels.
• Janitorial staff wages: Salaries or wages paid to in-house cleaning staff.
• Equipment purchases: Buying cleaning equipment such as vacuum cleaners or floor polishers.

For instance, if you hire a cleaning service that charges $500 per month or you spend $200 on cleaning supplies for the office, these costs should be recorded under the appropriate expense category. 

Tax implications of office cleaning

From a tax perspective, office cleaning expenses are generally considered ordinary and necessary business expenses, making them deductible. Accurately classifying these expenses ensures you can claim eligible deductions and maintain compliance with tax regulations.

When recording these expenses:

• Consistently categorize office cleaning expenses to avoid confusion and errors.
• Keep detailed records and receipts for all cleaning-related expenditures.
• Tax laws can vary, so it's advisable to consult with an accountant or refer to IRS guidelines to ensure correct deduction practices.

Proper classification not only aids in maximizing deductions but also helps avoid potential issues during tax audits.

Let Ramp automate your expense processes

Managing and categorizing expenses like office cleaning can be time-consuming. Ramp's expense management software automates this process, ensuring accurate categorization, tracking, and management of these expenses. With Ramp, you can streamline your expense management, maintain compliance, and focus on growing your business, all while simplifying your financial operations.