What expense category does stationery come under?

Figuring out how to categorize everyday items like stationery can sometimes be confusing. So, what expense category does stationery fall under? Let's break it down to help you keep your financial records straight.

Classifying stationery expenses

Stationery typically falls under the "office supplies" expense category in your accounting system. Here's how you can classify these expenses:

• Office supplies: Everyday items used for daily operations, such as pens, paper, notebooks, and sticky notes.
• Marketing materials (if applicable): If the stationery is customized with your company branding—like letterheads or business cards—it might be considered marketing materials.
• Prepaid expenses: If you purchase stationery in bulk for long-term use, you might initially record it as a prepaid expense (an asset) and then expense it over time as it's used.

Examples of stationery expenses

Stationery expenses cover a range of items essential for running your business smoothly. Examples include:

• Writing instruments: Pens, pencils, highlighters, markers.
• Paper products: Printing paper, notebooks, envelopes, sticky notes.
• Desk accessories: Staplers, paper clips, tape dispensers, scissors.
• Organizational supplies: Folders, binders, file labels.
• Custom-branded items: Company letterheads, branded notepads, business cards.

For example, if your company spends $150 on printing branded envelopes for mailing client documents, this expense would fall under office supplies or marketing materials, depending on their use.

Tax implications of stationery expenses

When it comes to taxes, properly categorizing stationery expenses can offer benefits:

• Deductible expenses: Stationery classified as office supplies is usually deductible as an ordinary business expense, reducing your taxable income.
• Capital Expenditure: In some cases, stationery expenses can be considered capital expenditures, allowing businesses to claim depreciation over time and providing long-term tax benefits. If you record bulk stationery purchases as prepaid expenses, you'll need to expense them over time, aligning with how they're used in your business.

Consistent classification of your expenses ensures compliance with tax regulations and makes tax preparation easier.

Let Ramp automate your expense process

Managing expenses like stationery shouldn't be a headache. Ramp can automate the categorization, tracking, and management of these expenses for you. Spend less time on bookkeeping and more time focusing on what really matters—growing your business.