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Classification of Recruiting Expenses

We are hiring about 50 + across the country and are flying in candidates to our Boston HQ. The cost is starting to be material. I go back and forth with putting all of the expense to to G&A or allocating it to the actual department related to the candidate. I was wondering what others are doing. Thank you.

Answers

Chris Shumate
Title: Accounting Manager
Company: Dominion Development Group, LLC
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(Accounting Manager, Dominion Development Group, LLC) |

I'd go with the actual department. This way you can track which department is spending more to recruit. It can also help you determine why they are spending what they're spending, which may help streamline hiring practices among department managers. If one department spends $10k to recruit and another spends $5k, could the big spender learn something from the other? How about the low spender, could they have hired someone better had they spent the extra money?

My opinion is that this isn't an SG&A expense if you keep departmental budgets and report revenues and expenses at the departmental level. If this person will be dedicated to a department code their applicable expenses that way too.

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