What expense category does SYNNEX fall under?

When purchasing IT products and services from SYNNEX, categorizing these expenses correctly is key to accurate financial reporting. SYNNEX falls under the information technology services expense category, but let's explore the specifics to keep your records in order.

Classifying SYNNEX expenses

When you're recording expenses related to SYNNEX (now known as TD SYNNEX), consider categorizing them as:

• Information technology services: This category reflects SYNNEX's role in IT distribution and supply chain services.
• Cost of goods sold (COGS): This category contains direct costs from purchasing technology products for resale or use.
• Operating expenses (SG&A): Includes logistics, shipping, and handling fees associated with your purchases.
• Equipment or hardware purchases: Costs related to acquiring physical IT hardware like servers or networking equipment fall under this category.

Examples of SYNNEX expenses

Here are common expenses your business might incur with SYNNEX:

• Hardware purchases: Buying laptops, desktops, servers, or networking equipment.
• Software licenses: Procuring software solutions and licenses for business operations.
• IT supply chain services: Utilizing SYNNEX's logistics and distribution for technology products.
• Maintenance and support: Investing in extended warranties or support services for your IT assets.

For example, if your company spends $15,000 on networking equipment from SYNNEX, you would categorize this under equipment or hardware purchases.

Tax implications of SYNNEX expenses

When it comes to taxes, SYNNEX-related expenses have several considerations:

• Deductible expenses: COGS and operating expenses like SG&A are typically deductible, reducing your taxable income.
• Capital expenses: Significant equipment purchases may need to be capitalized and depreciated over time rather than expensed immediately.

Recording your expenses correctly not only keeps you compliant but can also provide tax benefits. Properly categorizing expenses ensures compliance with tax laws and can affect your tax liability. Always check with a tax advisor to maximize deductions and adhere to regulations.

Let Ramp automate your expense process

Managing expenses from vendors like SYNNEX doesn't have to be complicated. Ramp automates expense tracking, ensuring every purchase is accurately categorized and easy to review. With Ramp, you save time, reduce errors, and gain clearer insights into your IT spending.