What expense category does a vehicle come under?
There are a few different expense categories that a vehicle could come under. It really depends on the business and how the vehicle is used. The most common expense categories for a vehicle are:
- Transportation
- Travel
- Maintenance and Repairs
Let's take a closer look at each of these categories:
Transportation
The transportation category is for businesses that use their vehicles to transport goods or services. This would include businesses like delivery companies, moving companies, or any business that uses their vehicles to transport their product or service to their customers.
Travel
The travel category is for businesses that use their vehicles to travel to meetings, events, or customers. This would include businesses like taxi or ride-sharing companies, or any business that uses their vehicles to travel to their customers.
Maintenance and Repairs
The maintenance and repairs category is for businesses that use their vehicles for business purposes and incur costs for maintaining and repairing their vehicles. This would include businesses like car dealerships, auto body shops, or any business that uses their vehicles for business purposes and incurs costs for maintaining and repairing their vehicles.
So, which expense category is the correct one for your business? It really depends on how you use your vehicle and what your business does. If you're not sure, you can always talk to your accountant or financial advisor to get some guidance.
