Expense Category

What expense category is postage?

There is no definitive answer to this question as it depends on the business and how they categorize their expenses. However, some common expense categories for postage include:

  • Shipping and Handling - This is a common category for businesses that ship products to customers. Postage would fall under this category since it is a cost associated with shipping products.
  • Postage and Delivery - This is a common category for businesses that send out invoices, marketing materials, or any other type of mail. This would be the appropriate category for businesses that don't ship products.
  • Office Supplies - This is a common category for businesses that have a physical office. If a business pays for a PO Box or postage meter, it would fall under this category.
  • Advertising and Marketing - This is a common category for businesses that use direct mail marketing. If a business sends out postcards, flyers, or any other type of direct mail, it would fall under this category.

Which expense category is correct for your business will depend on how you categorize your expenses and what type of postage you are paying for. If you are unsure, you can check with your accountant or bookkeeper to see how they recommend categorizing postage.

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.
“Accurate classification of expenses is vital for businesses as it forms the backbone of financial reporting, tax compliance, and strategic decision-making. It enables businesses to track and analyze their spending patterns, identify cost-saving opportunities, and assess the profitability of various operations or projects. Having a single source to turn to for accounting classification suggestions, such as the Ramp Expense Classifier tool, is immensely helpful as it provides consistency, reduces ambiguity, and streamlines the expense classification process.”
Audrey Carroll
Senior Manager, Accounting, Ramp
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“As we scale we need tools that are built to scale with us - we need to see expenses real time, we need to see duplicate spend. These types of insights are important to the health of our business.”

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