What expense category does signage come under?

Getting a handle on how to categorize your signage expenses is important for keeping your books straight, sticking to your budget, and staying on top of tax rules. When you classify these costs correctly, it not only keeps your financial records accurate but also helps you snag any tax deductions you might be eligible for related to signage.

Classifying signage expenses

Here are the key ways to classify these expenses:

• Advertising and marketing expenses: If your signage promotes your business, attracts customers, or increases brand awareness, it usually falls under advertising and marketing.
• Premises and equipment expenses: Permanent signs that are fixtures on your business premises may be classified here.
• Other categories: Depending on use, signage could also be categorized under other categories. 

Examples of signage expenses

Here are some common examples of how signage expenses can be classified, based on their function and use:

• Shop signs displaying your business name or logo, billboards that advertise your products or services, or promotional banners, posters, and other marketing materials typically fall under advertising and marketing expense. 
• Permanent internal signs (e.g., directional or informational signs within your store or office) and external signs affixed to your building or property are typically classified as premises and equipment expenses. 
• Signage displayed on company vehicles (classified under vehicle expenses, temporary signs used for events or trade shows (classified under event expenses), or digital signage displayed on your website (classified under website expenses) are some examples of other categories. 

Tax implications of signage expenses

The way you categorize signage expenses can have tax implications. Generally:

• Advertising and marketing expenses are often fully deductible as operating costs.
• Premises and equipment expenses may be capitalized and depreciated over time.
• Other categories may have specific tax rules depending on the expense

Let Ramp automate your expense process

Managing expense categories can be complex, but Ramp can help simplify it. Our platform automates the categorization, tracking, and management of expenses like signage, so you can focus on running your business effectively. Let Ramp streamline your expense process today.