What expense category does Zoom come under?

If you're wondering where Zoom fits into your business expenses, you're not alone. Knowing how to categorize Zoom can help keep your financial records accurate and make tax time easier. Here’s a quick breakdown of how to clasify Zoom expenses, their tax implication and how to automate them.

Classifying Zoom expenses

Zoom expenses can fall into a few different categories, depending on how you use it in your business. Whether you’re having training session or simply meeting wit your team, expect your expenses to fall under one or more of these categories:

• Software subscriptions: If you use Zoom as a software tool essential for your operations.
• Communication services: When Zoom is your main platform for meetings and communication.
• Training and development: If you primarily use Zoom for webinars or training sessions.

Examples of Zoom expenses

• A monthly Zoom Pro subscription for team meetings.
• Purchasing Zoom add-ons like large meeting capacity for webinars.
• Annual Zoom licensing fees for multiple users.
• Upgrading to Zoom Business for enhanced features.

For example, if you pay $149.90 annually for a Zoom Pro plan, you might categorize this under software subscriptions.

Tax implications of Zoom

When it comes to taxes, Zoom expenses are generally tax-deductible as ordinary and necessary business expenses. Here's what to keep in mind:

• Consistent categorization: Keep Zoom expenses in the same category throughout the year.
• Recordkeeping: Maintain receipts and records of all Zoom-related expenses.
• Self-employed considerations: If you're self-employed, you might report Zoom expenses as "Other Expenses" on Schedule C.
• Consult a professional: When in doubt, check with a tax advisor to ensure proper classification.

Let Ramp automate your expense process

Managing expenses like Zoom doesn't have to be a hassle. Ramp can automate the categorization, tracking, and management of your expenses, saving you time and reducing errors. Learn more about our expense management software and let Ramp handle the details so you can focus on growing your business.