What are Sundry Expenses in Accounting?

Sundry Expenses Definition

Sundry Expenses, often also called sundries, refer to miscellaneous items that do not fit into an existing dedicated account within the accounting ledger already.

 

For an item to be categorised as a sundry expense, they will often fit the following criteria:

 

  • Small in Value
  • Infrequent
  • Doesn’t Fit into any Other General Ledger Accounts

Categorising items as sundry expenses allows businesses to maintain financial accuracy without overwhelming their chart of accounts with numerous specific entries.

 

For example, if a business incurs a one-off parking fee charge for the first time, rather than create a new account in the ledger (ie “Parking Fees”), it can just charge the expense to the Sundry Expenses account.

Examples of Sundry Expenses

Categorising items as sundry expenses will depend on the business and their current chart of accounts, but common examples of sundry expense can include:

 

  • Parking Fees: Occasional fees for employee or client parking.

 

  • Toll Expenses: Charges for business-related travel on toll roads.

 

  • Bank Charges: Miscellaneous fees charged by banks for various services.

 

  • Printing and Copying: Costs related to printing documents or making copies.

 

  • Courier and Postage Charges: Expenses for mailing documents or packages.

 

  • Soft Drinks and Refreshments: Costs associated with providing coffee, tea, or snacks for employees and clients.

 

  • Minor Repairs: Costs for small repairs to office equipment or furniture.

 

  • Cleaning Services: Occasional payments for cleaning services in the office.

 

  • Office Decor: Costs for minor office decorations or improvements.

 

  • Gifts: Small gifts given to employees for birthdays or retirement.

 

  • Lost Key Replacement: Costs incurred for replacing lost keys to office premises or company vehicles.

 

  • Customs and Duties: Payments for infrequent customs duties or import/export fees.

 

  • Facility Pest Control: Payments for one time pest control services for the office.
Sundry Expenses in Accounting Examples

Why Use a Sundry Expenses Account?

There are several reasons why a business would use a sundry expenses account:

Convenience and Simplicity

The primary purpose of using a sundry expenses account is to simplify accounting processes.

 

Instead of creating numerous specific accounts for every minor transaction, using a sundry expenses account provides a convenient miscellaneous category.

Avoiding Overcomplication

Creating separate accounts in the accounting ledger for every small transaction can lead to a cluttered chart of accounts.

 

Sundry expenses accounts help to maintain clarity by grouping together miscellaneous items.

Facilitating Financial Reporting

Sundry expenses allow for more efficient and structured financial reporting.

 

When preparing financial statements or reports, it is easier to consolidate sundry transactions into a single line item rather than breaking down every minor transaction.

Managing Sundry Expenses

Just simply creating a sundry expenses account in the accounting ledger isn’t sufficient for a business to efficiently control them.

 

The following steps can help to effectively manage sundry expenses:

Regular Review

Despite its miscellaneous nature, the sundry expenses account should be regularly reviewed to identify patterns or recurring items that may justify the creation of new, specific accounts.

Evidence

Each sundry transaction should be properly documented to ensure transparency and understanding.

 

Details such as the purpose of the transaction, date, and relevant supporting documents (such as receipts) should be kept.

Training

It can be too easy for accountants to use the sundry expense account for items that already have their own specific account.

 

For example, the business incurs an expense for printing a new sign for the office but the accountant posts this expense to the ‘Sundry Expenses’ account, rather than the ‘Printing’ account.