Barrie Bookkeepers Inc

Why is miscellaneous expense not a good choice?

Sometimes it seems easier to create an expense account called miscellaneous rather than have several specific expense accounts. We never recommend this as it does not provide enough information on the financial statements. If you are looking at last year's financial statements to try to find ways to cut back on expenses, it is always better to see the nature of the expense listed on the statements instead of one expense called miscellaneous.