New Blog Post: How to Record Prepaid Expenses, and Why You Need To
There’s more to bookkeeping than tracking income and expenses.
Things can get a bit complex, especially when dealing with accrual-based methods, which involve recognizing expenses and revenues after, or even before, cash actually changes hands.
Sometimes you want to prepay for an expense up to 12 months in advance, maybe to lock in a discount, or simply because that’s what the vendor requires.
In accounting this is called, appropriately, a prepaid expense, and it requires special handling.
So today I’ve just published a blog post on how to record prepaid expenses in your books, whether it’s for 6 months, 12 months, or even 36 months in the future.
It’s a little technical but I’ve done my best to break down the process.
In support of your vision,
Brandon
Possible Promise Financial
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