What expense category does Shopify fall under?
Audrey Carroll, Senior Manager, Accounting, RampSee how Ramp automates accounting for 25k+ businesses
Answer
Shopify falls under the 'Software' expense category, specifically in the 'E-commerce and Retail Software' subcategory.
Role of the Expense in Business
Shopify is a popular e-commerce platform that enables businesses to set up online stores and sell products, widely used by retailers for digital sales and website management.
Practical Example
An online retail store using Shopify for its entire sales platform and inventory management would categorize these expenses under 'E-commerce and Retail Software'.
Specialized Expense
For businesses using Shopify only for a specific feature like POS systems or minor online sales, it might be categorized under 'General Sales Software'.
Conclusion
Shopify is predominantly categorized under the 'Software' expense category, specifically within 'E-commerce and Retail Software', reflecting its primary use in online retail and sales.
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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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