What expense category does pest control come under?

Pest control expenses can be tricky to classify, but getting them right is important for accurate bookkeeping and financial planning. So, where does pest control fit into your expense categories? 

Classifying pest control expenses

When it comes to categorizing pest control expenses, consider the specific purpose and frequency of the services. This will help you determine the most appropriate category for your business.

• Maintenance expenses: If pest control is part of regular property upkeep to maintain a safe environment.
• Operating expenses: If pest control is essential for daily business operations, especially in industries like food service or healthcare.
• Insurance expenses: If pest control services protect your assets or inventory from potential damage.

Examples of pest control expenses

Understanding the types of pest control expenses can help you categorize them accurately:

• Routine inspections: Regular checks to prevent infestations.
• Treatment services: Extermination or removal of pests.
• Preventative measures: Installing traps or barriers.
• Specialized services: Termite treatments for property protection.

For example, if you spend $200 monthly on pest control services to keep your restaurant pest-free, this would typically be classified under operating expenses.

Tax implications of pest control

When it comes to taxes, pest control expenses are generally deductible. However, understanding the specific tax rules and regulations that apply to your business is essential.

• Business expenses: Pest control is often considered an ordinary and necessary business expense.
• Rental properties: Landlords can deduct pest control costs as maintenance expenses.
• Home offices: You may deduct a portion of pest control expenses based on the percentage of your home used for business.

Let Ramp automate your expense process

Managing expenses like pest control doesn't have to be a hassle. Ramp can help automate the categorization, tracking, and management of these expenses, making it easier for you to focus on running your business effectively.