What expense category is office furniture?

Office furniture is a necessary cost for setting up and maintaining a functional workplace. But how should it be categorized? Properly classifying office furniture expenses helps keep your financial records accurate and ensures you’re handling larger purchases correctly for tax purposes.

Classifying office furniture expenses

Office furniture can be categorized in different ways depending on cost, usage, and your accounting policies. Common categories include:

• Fixed assets (furniture and fixtures): When office furniture provides long-term value and exceeds your capitalization threshold, it’s recorded as a fixed asset and depreciated over time.
• Office equipment: Some businesses group furniture under an office equipment category, especially when tracking physical assets together.
• General or office expenses: Lower-cost furniture items may be categorized as general or office expenses and expensed in the year they’re purchased.

Examples of office furniture expenses

Understanding what qualifies as an office furniture expense can help you track costs more accurately. Examples include:

• Desks and workstations: Items used for daily employee work
• Chairs and seating: Office chairs, conference seating, and guest chairs
• Storage solutions: Filing cabinets, shelves, and storage units
• Conference room furniture: Tables and meeting room seating
• Reception area furniture: Reception desks and waiting area seating

For example, if you purchase ergonomic office chairs for $8,000 total, you may record the cost under Furniture and fixtures and depreciate it over time. Smaller purchases, like a $300 desk, may instead be recorded under general or office expenses.

Tax implications of office furniture expenses

How you categorize office furniture affects how it’s treated for tax purposes:

• Capitalized assets: Furniture recorded as fixed assets is depreciated over its useful life rather than deducted immediately.
• Deductible expenses: Furniture categorized under general or office expenses is typically deductible in the year of purchase.

Using the same category consistently helps simplify tax reporting and reduce errors. Keep invoices and receipts to support your deductions, and consult a tax professional for guidance specific to your business.

Let Ramp automate your expense process

Managing expenses like office furniture doesn’t have to be manual. Ramp helps businesses track, categorize, and manage expenses accurately, so accounting stays organized as your company grows.