Expense Category
Professional Services

What expense category are taxes?

There are a few different ways to categorize taxes, and the answer may depend on the business owner or finance team's accounting method. Some common expense categories for taxes are:

Operating Expenses

Operating expenses are the costs of running the day-to-day operations of the business. This can include things like rent, utilities, salaries, and, in some cases, taxes. For businesses that file taxes quarterly or annually, the taxes may be lumped into this category.

Administrative Expenses

Administrative expenses are the costs associated with running the business, but not directly related to producing the product or service. This can include things like office supplies, professional fees, and, in some cases, taxes. For businesses that file taxes quarterly or annually, the taxes may be lumped into this category.

Other Expenses

Some businesses may have a separate category for taxes, depending on their accounting method. This category can include quarterly or annual tax payments, as well as any other one-time tax payments, like property taxes. This category can also include any other expenses that don't fit into the operating or administrative categories.

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

Tired of manually categorizing expenses? See how Ramp can automate this for you in the demo below

Get started for free

Cards, expenses, bills, and accounting – beautifully reimagined by experts to save you time and money.
Error Message
No personal credit checks or founder guarantee.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
1,500+ reviews

Experience the
Ramp advantage

Ramp is focused on maximizing your businesses most precious resources: every minute and dollar.
1,500+ reviews