What expense category does Plaid fall under?
Audrey Carroll, Senior Manager, Accounting, RampSee how Ramp automates accounting for 25k+ businesses
Answer
Plaid is categorized under the 'Software' expense category, specifically in the 'Financial Services and Data Integration Software' subcategory.
Role of the Expense in Business
Plaid provides technology that enables applications to connect with users’ bank accounts for financial data, widely used by fintech companies and financial services for secure data integration.
Practical Example
A fintech startup using Plaid for integrating banking data into its app would categorize these expenses under 'Financial Services and Data Integration Software'.
Specialized Expense
For businesses using Plaid on a limited scale for specific financial integrations, it might be categorized under 'General Financial Tools'.
Conclusion
Plaid's specialization in financial data integration places it within the 'Software' expense category, particularly for financial services and data integration.
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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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