Expense Accounts

Expenses refer to costs incurred in conducting business.

Technically, expenses are "decreases in economic benefits during the accounting period in the form of decreases in assets or increases in liabilities that result in
decreases in equity, other than those relating to distributions to equity participants".
From the long definition above, we can draw the following points:
1. Decrease in benefits during the accounting period - Expenses are measured from period to period, and results in a decrease in economic benefits.
2. Decrease in assets or increase in liabilities - The decrease in economic benefits mentioned above could be in the form of a decrease in assets or an increase in
liabilities. When a company incurs an expense, it pays cash; thereby decreasing assets. Besides cash, the company may also use other assets in paying expenses. It
may also incur in a liability in cases of accrued expenses (unpaid expenses).
3. Decrease in equity, other than distributions to equity participants - There are only two elements that decrease equity: distributions to owners (i.e., withdrawals or
dividends) and expenses.

List of Expense Accounts

1. 1. Cost of Sales - also known as Cost of Goods Sold, it represents the value of the items sold to customers before any mark-up. In merchandising companies,
cost of sales is normally the purchase price of the goods sold, including incidental costs. In manufacturing businesses, it is the total production cost of the units sold.
Service companies do not have cost of sales.
 Purchases - cost of merchandise acquired that are to be sold in the normal course of business. At the end of the period, this account is closed to Cost of
Sales.
 Freight in - If the business shoulders the cost of transporting the goods it purchased, such cost is recorded as Freight-in. This account is also closed to
Cost of Sales at the end of the period.
2. 2. Advertising Expense - costs of promoting the business such as those incurred in newspaper publications, television and radio broadcasts, billboards, flyers,
etc.
3. 3. Bank Service Charge - costs charged by banks for the use of their services
4. 4. Delivery Expense - represents cost of gas, oil, courier fees, and other costs incurred by the business in transporting the goods sold to the customers. Delivery
expense is also known as Freight-out.
5. 5. Depreciation Expense - refers to the portion of the cost of fixed assets (property, plant, and equipment) used for the operations of the period reported
6. 6. Insurance Expense - insurance premiums paid or payable to an insurance company who accepts to guarantee the business against losses from a specified
event
7. 7. Interest Expense - cost of borrowing money
8. 8. Rent Expense - cost paid or to be paid to a lessor for the right to use a commercial property such as an office space, a storeroom, a building, etc.
9. 9. Repairs and Maintenance - cost of repairing and servicing certain assets such as building facilities, machinery, and equipment
10. 10. Representation Expense - entertainment costs for customers, employees and owners. It is often coupled with traveling, hence the account title Travel and
Representation Expense.
11. 11. Salaries Expense - compensation to employees for their services to the company
12. 12. Supplies Expense - cost of supplies (ball pens, ink, paper, spare parts, etc.) used by the business. Specific accounts may be in place such as Office Supplies
Expense, Store Supplies Expense, and Service Supplies Expense.
13. 13. License Fees and Taxes - business taxes, registration, and licensing fees paid to the government
14. 14. Telecommunications Expense - cost of using communication and telephony technologies such as mobile phones, land lines, and internet
15. 15. Training and Development - costs for the enhancement of employee skills
16. 16. Utilities Expense - water and electricity costs paid or payable to utility companies
And others, such as Accounting or Bookkeeping Fees, Legal and Attorney Fees, etc. Expenses are deducted from revenues to arrive at the company's net income.

Account Name Description

Advertising and Promotion Advertising, marketing, graphic design, and other promotional expenses
Auto and Truck Expenses Fuel, oil, repairs, and other maintenance for business autos and trucks
Bank Service Charges Bank account service fees, bad check charges and other bank fees
Blueprints and Reproduction Blueprints, photostats, and other printing expense
Bond Expense Construction bonds expenses directly related to jobs
Building and Property Security Building and property security monitoring expenses
Business Licenses and Permits Business licenses, permits, and other business-related fees
Commissions Paid
Computer and Internet Expenses
Conferences and Meetings
Chemicals Purchased
Construction Materials Costs
Continuing Education
Accounting Fees
Legal Fees
Contracted Services
Depreciation Expense
Dues and Subscriptions
Equipment Rental
Equipment Rental for Jobs
Special Events
Facilities and Equipment
Fertilizers and Lime
Food Purchases
Freight and Shipping Costs
Freight and Trucking
Freight Costs
Fuel for Hired Vehicles
Gasoline, Fuel and Oil
Commissions paid to outside sales reps and agents
Computer supplies, off-the-shelf software, online fees, and other computer or internet related expenses
Costs for attending conferences and meetings
Costs of chemicals used in farming operations
Construction materials costs
Seminars, educational expenses and employee development, not including travel
Outside (non-employee) accounting, audit, bookkeeping, tax prep, payroll service, and related consulting
Outside (non-employee) legal services
Direct labor costs for contract (non-employees) performing services for clients
Depreciation on equipment, buildings and improvements
Subscriptions and membership dues for civic, service, professional, trade organizations
Rent paid for rented equipment used for business
Rent paid for rented equipment used on jobs
Brand vangelism, and special events
Expenses related to office, storage, and other space
Fertilizers and lime purchased for farm operations.
Food purchases including meats, vegetables, and all ingredients for Restaurants
Freight-in and shipping costs for delivery to customers
Amounts paid for freight or trucking of farm products.
Costs of freight and delivery for merchandise purchased
Fuel costs for hired vehicles
Gasoline, fuel or oil used for farm machinery
General Liability Insurance
Life and Disability Insurance
Professional Liability
Workers Compensation
Equipment Insurance
Interest Expense
Janitorial Expense
Job Materials Purchased
Laboratory Fees
Landscaping and Groundskeeping
Linens and Lodging Supplies
Marketing Expense
Materials Costs
Meals and Entertainment***
Media Purchased for Clients
Medical Records and Supplies
Merchant Account Fees
Ministry Expenses
Office Supplies
Other Construction Costs
Other Job Related Costs
Outside Services
General liability insurance premiums
Employee life and disability insurance premiums
Professional liability (errors and omissions) insurance
Worker’s compensation insurance premiums
Insurinf your equipment or facilities
Interest payments on business loans, credit card balances, or other business debt
Janitorial expenses and cleaning supplies
Construction materials used on jobs
Charges from outside laboratories
Landscape maintenance, gardening, and pool maintenance costs of your building
Costs of linens and other supplies for guest rooms
Advertising, marketing, graphic design, and other promotional expenses for our company
Cost of materials used on jobs
Business meals and entertainment expenses, including travel-related meals (may have limited deductibility, specially after 01/01/2018)
Print, TV, radio, and other media purchased for clients
Filing supplies for medical records for medical practices
Credit card merchant account discount fees, transaction fees, and related costs
Ministry expenses for non-profit / churches
Office supplies expense
Other costs directly related to jobs such as waste disposal, onsite storage rental, etc.
Other costs directly related to jobs such as waste disposal, onsite storage rental, etc.
Payments to outside contractors (non-employees) for projects, consulting, or short-term assignments
Parts Purchases
Payroll Expenses
Postage and Delivery
Printing and Reproduction
Product Samples Expense
Professional Fees
Purchases – Hardware for Resale
Purchases – Parts and Materials
Purchases – Resale Items
Purchases – Software for Resale
Reference Materials
Rent Expense
Repairs and Maintenance
Research Services
Restaurant Supplies
Salon Supplies, Linens, Laundry
Seeds and Plants Purchased
Shop Expense
Small Medical Equipment
Small Tools and Equipment
Storage and Warehousing
Subcontractors Expense
Purchases of parts for use on customer repairs or resale
Payroll expenses
Postage, courier, and pickup and delivery services
Printing, copies, and other reproduction expenses
Cost of products used as floor samples or given to customers for trial or demonstration
Payments to attorneys and other professionals for services rendered
Purchases of hardware items for resale that are not tracked or counted in inventory
Purchases of parts and other supplies used on service and maintenance jobs
Purchases of items for resale that are not tracked or counted in inventory
Purchases of software items for resale that are not tracked or counted in inventory
Coding books, anatomical charts and models, etc.
Rent paid for company offices or other structures used in the business
Incidental repairs and maintenance of business assets that do not add to the value or appreciably prolong its life
Research costs including legal library and subscriptions for research services
Supplies purchased for restaurant operations. Includes dishes, cookware, and other items not classified as inventory or fixed assets
Costs of supplies used in the course of business (includes linens and laundry services)
Seeds and plants purchased for producing farm income.
Miscellaneous shop supplies and related shop expenses (rags, hand cleaning supplies, etc.)
Purchases of small instruments and equipment not classified as fixed assets for medical practices
Purchases of small tools or equipment not classified as fixed assets
Amounts paid to store farm commodities.
Subcontracted services performed by other contractors
Taxes – Property
Telephone Expense
Tools and Small Equipment
Travel and Meetings
Conference, Convention, Meeting
Travel Expense
Travel Expenses for Drivers
Truck Maintenance Costs
Uniforms
Utilities
Vaccines and Medicines
Worker’s Compensation Insurance
Taxes paid on property owned by the business, franchise taxes, excise taxes, etc.
Telephone and long distance charges, faxing, and other fees Not equipment purchases
Purchases of tools or small equipment used on jobs
Expenses related to travel, meetings, conferences
Conducting, or sending staff to, program-related meetings, conferences, conventions
Business-related travel expenses including airline tickets, taxi fares, hotel and other travel expenses
Business-related travel expenses including hotel and meals for drivers
Maintenance, repairs, tires, etc. on trucks, tractors, and trailers for hire
Uniforms for employees and contractors
Water, electricity, garbage, and other basic utilities expenses of your office or business facilities
Vaccines, medicines, and other drugs for medical practices
Worker’s compensation insurance premiums