Expense Category
Office
What expense category is a software subscription?
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There is no definitive answer to this question, as it will depend on the specific software subscription and how it is used by the business. However, some common expense categories for software subscriptions include:

Operating Expenses

This is the most common category for software subscriptions, as the subscription is typically used to run the business on a day-to-day basis. This could include office productivity software, customer relationship management (CRM) software, or any other type of software that is essential to the operation of the business.

Capital Expenditures

This category is less common, but could be applicable if the software subscription is for a mission-critical application that is considered a long-term investment. For example, enterprise resource planning (ERP) software or other software that will be used for many years to come would typically fall into this category.

Other

There are many other possible expense categories for software subscriptions, depending on the specific software and how it is used. Some examples include:

  • Research and development
  • Marketing
  • Training
  • Travel
  • Entertainment

Ultimately, it is up to the business owner or finance team to determine which expense category is most appropriate for each software subscription.

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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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