What expense category does Zendesk fall under?

When accounting for Zendesk expenses, it's important to categorize them correctly to keep your financial records accurate. So, where does Zendesk fit in your expense categories?

Classifying Zendesk expenses

Zendesk, Inc., expenses typically fall under the software or SaaS (Software as a Service) expense category. Here are key ways to categorize them:

• Customer support and service software: Since Zendesk provides customer service tools, this is a common category.
• Software subscriptions: This category reflects software expenses organized by their subscription model.
• General customer service expenses: If Zendesk is used minimally for occasional support, you can categorize them as general customer service expenses.

Examples of Zendesk expenses

Here are some examples to illustrate how Zendesk expenses might be categorized:

• A company uses Zendesk for all customer service operations and categorizes them under customer support and service software.
• A small business subscribes to Zendesk's basic plan for occasional customer inquiries and categorizes these expenses under general customer service expenses.
• Annual subscription costs for Zendesk are recorded under software subscriptions.

For instance, if you subscribe to Zendesk's Professional plan at $89 per agent per month, and you have 10 agents, your total monthly expense would be $890. This expense would typically be recorded under software subscription expenses.

Tax implications of Zendesk expenses

When it comes to taxes, software expenses like Zendesk are generally deductible as business expenses. Key considerations include:

• Deductibility: Software subscription fees are typically deductible in the year they are incurred. Keep detailed records of all Zendesk expenses for accurate tax reporting.
• Business use percentage: If you use Zendesk for both business and personal purposes, you can only deduct the percentage of the subscription fee that corresponds to business use.

Always verify with a tax advisor to ensure compliance with current tax laws.

Let Ramp automate your expense process

Managing and categorizing expenses like Zendesk can be time-consuming. Ramp simplifies this process by automating expense tracking and categorization, saving you time and reducing errors. Let Ramp help you manage your software expenses more efficiently.