Expense Category
Equipment

What expense category does storage come under?

There is no definitive answer to this question, as it will depend on the specific business and how they operate. However, some possible expense categories for storage costs could include:

Inventory

If the business stores inventory on-site, then the storage costs could be included as part of the inventory expenses. This would include the cost of renting or leasing storage space, as well as any costs associated with maintaining and stocking the inventory.

Operating Expenses

Another possible category for storage costs is operating expenses. This could include the cost of renting or leasing storage space, as well as any costs associated with maintaining and stocking the inventory. If the inventory is considered a necessary part of the business operation, then the storage costs could be included under operating expenses.

Other

There are many other possible expense categories for storage costs, depending on the specific business and how they operate. Some other possible categories could include:

  • Asset purchase
  • Capital expenditure
  • Property taxes
  • Insurance
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.
“Accurate classification of expenses is vital for businesses as it forms the backbone of financial reporting, tax compliance, and strategic decision-making. It enables businesses to track and analyze their spending patterns, identify cost-saving opportunities, and assess the profitability of various operations or projects. Having a single source to turn to for accounting classification suggestions, such as the Ramp Expense Classifier tool, is immensely helpful as it provides consistency, reduces ambiguity, and streamlines the expense classification process.”
Audrey Carroll
Senior Manager, Accounting, Ramp

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