Expense Category
Equipment

What expense category is computer software?

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There is no definitive answer to this question, as the expense category for computer software can vary depending on the business and the software itself. However, some common expense categories for computer software include:

Operating Expenses

Operating expenses are the costs associated with running a business on a day-to-day basis. This can include costs such as rent, utilities, salaries, and office supplies. For businesses that use computer software, operating expenses may also include the cost of the software itself, as well as any fees associated with its use (such as subscription fees or maintenance fees).

Capital Expenditures

Capital expenditures are the costs associated with long-term investments in a business, such as the purchase of equipment or property. For businesses that use computer software, capital expenditures may include the cost of the software itself, as well as any fees associated with its purchase (such as licensing fees).

Research and Development

Research and development expenses are the costs associated with creating new products or services. For businesses that use computer software, research and development expenses may include the cost of developing new software, as well as any fees associated with its use (such as subscription fees or maintenance fees).

Marketing and Advertising

Marketing and advertising expenses are the costs associated with promoting a business and its products or services. For businesses that use computer software, marketing and advertising expenses may include the cost of promoting the software itself, as well as any fees associated with its use (such as subscription fees or maintenance fees).

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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.
Steve Padis, SVP Finance & Strategy, Barry's
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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