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.
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. |