If your expenses list is long and cumbersome split the list into different groups with sub-totals to make them more manageable. You could have a group called ‘Administration Expenses’ and another called ‘Operating Expenses’... really, anything that will work and make it easier is acceptable.
Cost of Goods Sold also known as Cost of Sales. You will have noticed this in the example Chart above. Cost of Sales are basically any item, parts or service that a business has specifically purchased in order to fulfil a customer’s order or requirements. The cost part is the actual value of the purchase. (Not to be confused with the price charged to the customer which should be the cost price plus a percentage mark-up.)
The general ledger account list, or Chart of Accounts as it is commonly called, can be as complex or as simple as the business owner/manager wants it to be. The chart is flexible and can be tailored to suit any business, enabling it to separate out information of interest or information that keeps the bookkeeping in line with government tax department requirements.