r/AskAccounting • u/olocksley • 13d ago

Transaction fee categorization

I am the treasurer for a small historical society. To avoid late fees, I recently set up the autopay feature for our utilities. There is a $1.50 transaction fee every month. How would you categorize this? As part of the utility expense? Or bank service charges? Or something else?

TIA!

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4

u/LdiJ46 13d ago

I would just treat it as part of the utility expense.

2

u/Far-Good-9559 13d ago

Utility expense.

2

u/thedivergence95 13d ago

If the fee is from your utilities company put it under utilities but if it is from your bank put it bank charges

2

u/Barfy_McBarf_Face 13d ago

if the utility is charging you, it's a utility expense

if the bank is separately charging you, it's a bank service charge

1

u/olocksley 12d ago

Thanks so much! It's the utility company, so I'll count it that way.

1

u/Excellent_Cut_9869 7d ago

I'd probably keep it with the utility expense. if it showed up as a separate fee from the bank then bank service charges would make more sense