All You Need to Know About Sundry Expenses

Sundry expenses refer to minor, irregular costs that don’t fit into regular accounting categories, often arising unexpectedly. These can include items such as infrequent office supplies, maintenance, small travel expenses, or surprise fees like bank charges. While small, sundry expenses can significantly impact financial clarity if not tracked properly, making it challenging to forecast and maintain accurate records. For small to medium-sized businesses, managing these costs effectively is crucial. However, categorising them can be difficult due to their sporadic nature and overlap with regular expenses.

Sundry expenses can either be categorised under a single "sundry" account or divided into subcategories for a more detailed breakdown. Businesses often set thresholds for what qualifies as sundry expenses, typically ranging from £100 for small businesses to up to £500 for larger firms. Despite these strategies, manual tracking remains time-consuming and error-prone, with financial teams dedicating considerable time to non-payroll expenses, including sundry costs.

Challenges include employees submitting claims for unplanned expenses, approval bottlenecks, and difficulties categorising the various sundry items accurately. These issues, if left unchecked, can lead to budget shortfalls, poor financial planning, and compliance risks. To mitigate these challenges, businesses are increasingly turning to automation to streamline expense tracking.

Automation tools can simplify the process by enabling receipt scanning, automatic categorisation, and approval alerts. These tools help reduce manual errors, speed up reimbursements, and provide real-time visibility into sundry expenses. By leveraging automation, businesses can ensure accurate and efficient expense management, leading to better financial oversight and improved forecasting.

Ultimately, automated tools like Dext can help businesses fully optimise their expense processes, saving time and reducing errors. For example, by using automation, companies can track small costs more effectively, reclaim tax credits, and simplify the reimbursement process. As such, businesses are better equipped to manage sundry expenses and ensure they don’t disrupt overall financial planning.