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 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 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.
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.