What is a sundry expense?

A sundry expense is any ordinary and necessary business cost that is minor, infrequent, and cannot reasonably be classified under a specific expense category. Sundry expenses usually arise unexpectedly or occur too rarely to justify their own dedicated account. Because sundry expenses can attract scrutiny if overused, they should be recorded carefully and with clear documentation.

How to categorize sundry expenses

Record under Operating Expenses on the income statement.
Use a Sundry Expenses or Miscellaneous Expenses account in the chart of accounts.
Only include items that do not fit established expense categories.
Create a new category if similar sundry items begin to recur.
Keep receipts and detailed notes explaining the business purpose of each expense.

Examples of sundry expenses

Small bank or processing fees not classified elsewhere.
One-off courier, postage, or notary fees.
Minor office supplies purchased infrequently.
Small client goodwill gestures or tokens of appreciation.
Replacement of inexpensive tools or accessories.
Unexpected short-term charges or service fees.

Tax implications for sundry expenses

Sundry expenses are generally tax-deductible if they are ordinary, necessary, and business-related.
Personal or non-business sundry costs are not deductible.
Large or frequent sundry entries may raise audit concerns.
Clear itemization and documentation support deductibility.
Sundry expenses are deducted on Schedule C or under “Other Expenses” on business tax returns.