Expense type categorizations used by companies are normally derived from the specifics of each companies information needs so its adaptation to those offered by our app need to be set by your accountant.

But to help you on your way to becoming a master cost categorizer, here are some standard situations to consider:

The CAR category should be used in cases where the cost is related to a company-owned car when buying either fuel, car care products or services related to the car (tire change, repairs or maintenance). Parking costs also fall under this category. Simply put - all your company car related costs.

The TRANSPORT category should be used where the cost is related to transport services - bus tickets, taxi receipts, train and plane tickets. Simply put - costs that help you get from point A to point B.

The BUSINESS COST category is more general in nature and depends on the companies field of operation. For example, this could include all office-related cost such as office supplies, newspapers, furniture or repairs and maintenance. Simply put - costs related to your operations can be catergorized as business costs.

The REPRESENTATION COST category should be used when reporting costs related to hosting guests (restaurant invoices or food and coffee purchased for use at the office), but also gifts and

benefits given to employees (eating out, food purchased for the office, gifts etc.) Simply put - costs that cannot be directly linked to the companies main field of operations and should be caterorized

as benefits provided to guests or employees.

The OTHER COST category should be used when reporting costs that do not fall under any of the previously mentioned categories (for example hotels when travelling etc). We strongly recommend

you to consult with your accountant on his/her personal preferences when reporting cost as an agreed process makes using cost centers and calculating taxes in accounting tremendously easier.

Tax exceptions have been established with all company car related costs (100% of input VAT cannot generally be deducted) and representation costs that could fall under different categorizations (benefits, gifts or hosting guests). We recommend you use the possibility to comment to explain the nature of the cost to your accountant. For example, when reporting travel-related costs, include destination and time of travel. When reporting representation costs, include the name of the person you met. When reporting purchases, include where the purchase was made and whether it is meant to be resold. You can also include information on which location the cost is related to.

We hope this little how-to guide provides some clarity on how different cost categorizations could be used or how to set up your own process when assigning costs to different categories. Whichever way you decide, remember - it is consistency that matters.

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