Hi Shoba,
Good question! Indirect costs are not “allocated”; they should be treated as overhead and put into a pool to cover the company’s general and administrative expenses. Rent can be either a direct or indirect expense. If treated as a direct cost, you would need to determine the portion of the total space needed for each project and split the costs. If treated as an indirect cost (which is more common), you can just pay from the indirect pool. A professional accounting and compliance (A/C) team can help you set up a financial system and provide ongoing bookkeeping, accounting, and financial reporting. To know more about the A/C services EGC provides, please visit https://www.evagarland.com/services/accounting/ or schedule a consultation with us at the bottom of that page. As always, please feel free to reach out if you have additional questions. -Lu