What is sundry expenses?
Sundry expenses are minor, irregular costs that don’t easily fit into standard accounting categories. These are typically infrequent and unexpected expenses, such as an employee retirement gift or a one-time charitable donation. While sundry expenses may seem insignificant, tracking them is essential for maintaining accurate financial records.
In this guide, we explain what is sundry expenses, their key characteristics, and how they differ from general expenses. We’ll also cover whether the fees when you transfer money online globally fall under sundry expenses.
Characteristics of sundry expenses
Sundry expenses are defined by these characteristics:
• They are usually for small, insignificant amounts.
• These costs occur irregularly or infrequently.
• They are expenses that don’t fit neatly into any major accounting categories.
• Sundry expenses are often unexpected or unusual.
Examples of sundry expenses
Sundry expenses can cover a wide range of miscellaneous costs, and while small, they should still be recorded. Here are some typical examples of sundry expenses:
• Charity donations.
• Gifts for employees or colleagues.
• Minor travel expenses like parking fees or tolls.
• One-off postage fees or courier service charges.
• One-time bank service charges.
If your business handles international transactions, you may incur money transfer fees. Whether these fees qualify as sundry expenses depends on how often they occur. A one-time transfer fee might be classified as a sundry expense, but if global transfers are regular, it may be more appropriate to categorise these as general expenses.
Sundry expenses vs. general expenses
Sundry expenses differ from general expenses. General expenses are predictable, recurring costs like rent or utilities, which are easier to plan for. The sundry expense meaning refers to irregular, smaller costs that occur sporadically and don’t fit into standard categories.
Here’s a comparison of the two:
| Sundry Expenses | General Expenses | |
| Classification | Difficult to classify under regular expense accounts | Easy to classify under regular expense accounts |
| Frequency | Irregular and infrequent | Regular and frequent |
| Amount | Small amounts | Larger, planned expenses |
| Examples | Charity donations, employee gifts, and one-time bank charges | Rent, utilities, and salaries |
Recording sundry expenses in accounting
Sundry expenses are typically recorded under a separate category in your general ledger or accounting software. For small businesses, these can often be grouped together as a single line item under expenses, keeping things simple and organised. Larger businesses with more advanced accounting systems may create a designated section specifically for sundry expenses, ensuring even minor costs are tracked accurately.
Regardless of how you record sundry expenses, it’s important to regularly review them. If certain costs, like a money transfer fee, become a recurring expense, they should be reclassified as general expenses. This helps maintain accurate financial records and better expense management.
Why is it important to register sundry expenses?
Even though sundry expenses may seem insignificant, they can accumulate and impact your business’s budget and tax liability. For example, spending £50 on a gift for an employee might seem small, but if you do this for 20 employees, that’s £1,000 in expenses. Recording these expenses helps keep your financial records accurate, ensuring that you stay on top of your finances and avoid any surprises when tax season comes around.
Sundry expenditure and tax
Sundry expenses can give your business valuable tax advantages by helping reduce taxable profits. By tracking these small, irregular costs, you can deduct them from your overall income, which means less of your profit is subject to taxation. Even though each sundry expense might seem minor, together they can make a real difference in lowering your tax obligations.
If your business is VAT registered, sundry expenses can also help reduce your VAT liability. Small purchases like one-off office supplies may qualify for VAT recovery. By keeping a close eye on these costs, you ensure you’re taking full advantage of tax savings opportunities over time.
Managing expenses with Western Union
Easily manage your international transactions with Western Union. Whether you want to send or receive money from abroad, you can easily check exchange rates to help track your expenses. Available in over 200 countries and territories, Western Union ensures reliable global payments and transfer fees.
FAQs
What is an example of a sundry expense?
A common example of a sundry expense is a one-time charity donation. This is a minor spend that doesn’t occur often enough to be categorised as a general expense.
What are examples of sundries?
Examples of sundries include minor travel costs like parking fees, last-minute office supplies, or a one-time gift for a colleague. These expenses are usually infrequent and of low value, making them harder to predict in advance.
What are sundry items?
Sundry items are miscellaneous goods or services that do not fall under any specific category in your budget or accounting records. They are typically small, one-off purchases, such as nonstandard office supplies.
