Expenses Account Classes

The expenses account group refers to the costs associated with running a business.

Each account group in Sage 50 Accounting can be further divided into account classes. All accounts grouped from 5000 to 5999 are expenses. Unless your accountant specifies otherwise, use the default account group Expense.

Table showing the account classes in the expense account group

Account Class	Description
Expense	A generic expense account that covers all expenses.
Cost of Goods Sold (COGS)	The cost of your inventory.
Operating Expense	Expenses other than the cost of inventory incurred during the regular operation of your business.
General and Administrative Expense	Amount spent for administration and other general expenses.
Amortization and Depreciation Expense	The estimated loss in value of an asset over time or from use.
Bad Debt Expense	Amount lost due to bad debts or the estimated amount of bad debt.
Employee Benefits	Amount spent to cover employee benefits.
Payroll Expense	Amount spent to pay employees.
Interest Expense	Amount spent on interest on debts and liabilities, such as loans.
Income Tax Expense	Amount spent on the income taxes for the business.
Non-Operating Expense	Expenses incurred outside of the regular operation of a business.
Loss	Amounts lost from the sale of a fixed asset, such as the sale of a building.
Extraordinary Loss	Amounts lost from activities over which the business has no control, such as the expropriation of land.