Sundry expenses are costs which may be relatively small or occur infrequently and are therefore not assigned to a specific ledger group. They are also known as miscellaneous expenses and are classified together as a group when they are presented in an accounting statement.
Sundry expenses count as operating expenses in an income and expense statement, meaning they are incurred in support of the day-to-day business of the company or individual in question. Sundry expenses often come up in sales or administration.
By definition, sundry expenses do not include regular payments of any kind or those that would be defined as capital expenses, such as those related to capital equipment, shares or assets. Sundry expenses, therefore, do not generally include:
- Rent or utility payments
- Depreciation or amortization expenses
- Accounting or professional fees
- Marketing or advertising costs.
- Employee benefits
Another way to classify sundry and operating expenses in general is to consider them as being related directly to the way the company generates revenue. Miscellaneous or sundry expenses are presented last in the list of expenses on an income statement. As part of the operating expenses, sundry expenses are deducted from gross revenues in an income statement.