What expense category does Prolific fall under?

Prolific is a popular platform for sourcing research participants and distributing surveys, but when it comes to accounting, where do these expenses fit? Let's break down the proper expense category for Prolific and why it matters for your business.

Classifying Prolific expenses

Prolific expenses fall under the software category, specifically within research and survey software. Here's how you can categorize these expenses:

• Software expenses: Prolific expenses can be primarily categorized as software expenses, as they relate to the use of online research and survey software.
• Research and Development: Prolific expenses can be further subcategorized under Research and Development, as they facilitate data collection and analysis for research purposes.
• Research Tools: Additional tags such as Research Tools can be used to provide further context and clarity to Prolific expenses.

Examples of Prolific expenses

Here are some common expenses you might incur with Prolific:

• Participant payments: Fees paid to individuals who take part in your studies.
• Survey distribution costs: Charges for distributing surveys to specific demographics or target groups.
• Platform fees: Subscription costs or service fees for accessing Prolific's platform.
• Feature upgrades: Costs for additional functionalities like advanced targeting or analytics tools.

For example, if you spend $500 on participant payments for a study and pay a $50 platform fee, both expenses can be categorized under research and survey software expenses.

Tax implications of Prolific expenses

Properly categorizing your Prolific expenses can have tax benefits and ensure compliance. Keep in mind:

• Deductible expenses: Prolific costs are generally tax-deductible as ordinary business expenses. Depending on your accounting practices, software costs might be expensed in the year incurred or capitalized over time.
• Capital expenditures: If you've invested in custom integrations or software development related to Prolific, these costs may be considered capital expenditures and subject to depreciation, rather than being fully deductible in the year of purchase.

Maintain detailed records of all Prolific transactions, including receipts and invoices. If you make significant payments to participants, you may need to track and report these amounts for tax purposes. Consult with a tax professional to make sure you're handling these expenses correctly.

Let Ramp automate your expense process

Managing and categorizing expenses like Prolific doesn't have to be a hassle. Ramp automates expense tracking and categorization, giving you real-time insights into your research spending. Let Ramp handle the details so you can focus on what matters most.