What expense category does ZoomInfo fall under?

If you're using ZoomInfo in your business, you might be wondering where it fits in your expense categories. Is it just another software cost, or does it deserve its own category? Let's break down where ZoomInfo belongs in your financial records.

Classifying ZoomInfo expenses

ZoomInfo is a powerful tool that boosts your sales and marketing efforts by providing B2B contact and company information. When categorizing ZoomInfo expenses, consider:

• Sales intelligence and data enrichment software: ZoomInfo enhances your sales operations by aiding in lead generation and data enrichment.
• Software expenses: As a cloud-based platform, it falls under general software expenses.
• Sales and marketing expenses: If primarily used by your sales team, it can be classified here.

Examples of ZoomInfo expenses

Here are ways businesses might record ZoomInfo expenses:

• Subscription fees: Monthly or annual payments for access to ZoomInfo's services.
• User licenses: Costs associated with additional user accounts for your team.
• Integration costs: Expenses for integrating ZoomInfo with your existing CRM or other tools.

For example, if your company pays $600 per month for ZoomInfo subscriptions and $200 for integration services, you'd categorize these under sales intelligence software expenses.

Tax implications of ZoomInfo expenses

When it comes to taxes, ZoomInfo expenses can impact your deductions:

• Deductible expense: ZoomInfo is an ordinary and necessary business expense, making it tax-deductible. Recurring subscription fees are typically fully deductible in the year they're incurred.
• Capital expenses: If you pay for a ZoomInfo subscription for more than a year, it may be considered a capital expense. In this case, you may need to amortize the cost over the subscription period for tax purposes.

Keeping detailed records of your ZoomInfo expenses supports accurate tax reporting. You can also consult a tax professional to ensure you're maximizing your deductions and complying with tax laws.

Let Ramp automate your expense process

Managing expenses like ZoomInfo doesn't have to be complicated. Ramp can automate the categorization and tracking of your software expenses, giving you real-time insights and reducing manual work. Simplify your expense management with Ramp and focus on what matters most—growing your business.