Hi All,
Can anyone provide guidance on where one would be able to determine the correct category for various expenses, or whether the IRS has specific requirements?
At my last job, we primarily used Quickbooks, and the company I worked for at the time had a wide variety of different expenses that I could see fitting into multiple accounts, as they seemed very similar. For example, it was simple to figure out that paying the gas bill for one of our locations would go into the Utility account; however, some goods and/or services such as ChatGPT, I could see fitting into either the Computer & Internet Expense or Dues & Subscriptions. In addition to the Computer & Internet Expense, there was also the Internet Expense account, which was the account we would use when paying a location's internet bill, but couldn't this also be applicable to the Computer & Internet Expense account as well?
I did see a post from another forum where it was said that paying for a cloud service (storage) would be treated as a rent expense. I was a little shocked at first, but I can definitely see that too. Without seeing that post, I would have also thought to place it in the Computer & Internet Expense or Dues & Subscriptions accounts too. I feel like I'm either overthinking these things, or not thinking hard enough, and I don't see that the IRS website has a handy cheat sheet when it comes to determining the accounts for all the obscure things/services a business would purchase or subscribe to during the course of operation.
Can anyone provide guidance on where one would be able to determine the correct category for various expenses, or whether the IRS has specific requirements?
At my last job, we primarily used Quickbooks, and the company I worked for at the time had a wide variety of different expenses that I could see fitting into multiple accounts, as they seemed very similar. For example, it was simple to figure out that paying the gas bill for one of our locations would go into the Utility account; however, some goods and/or services such as ChatGPT, I could see fitting into either the Computer & Internet Expense or Dues & Subscriptions. In addition to the Computer & Internet Expense, there was also the Internet Expense account, which was the account we would use when paying a location's internet bill, but couldn't this also be applicable to the Computer & Internet Expense account as well?
I did see a post from another forum where it was said that paying for a cloud service (storage) would be treated as a rent expense. I was a little shocked at first, but I can definitely see that too. Without seeing that post, I would have also thought to place it in the Computer & Internet Expense or Dues & Subscriptions accounts too. I feel like I'm either overthinking these things, or not thinking hard enough, and I don't see that the IRS website has a handy cheat sheet when it comes to determining the accounts for all the obscure things/services a business would purchase or subscribe to during the course of operation.