Prepaid Expenses - Core
Overview
The Prepaid Expenses - Core Excel Template simplifies the management, tracking, and accounting for prepaid expenses. Designed specifically for accountants, small business owners, and finance professionals, this template automates monthly amortization calculations and provides clear visibility into your prepaid expense balances.
Our Excel templates are designed specifically to support the needs of:
- Accountants and Bookkeepers:
Simplify and accelerate monthly accounting, reconciliations, and month-end close procedures. - Auditors:
Easily validate prepaid expenses, conduct reconciliations, perform substantive testing, and ensure audit readiness. - Business Owners and Managers:
Enhance visibility into prepaid expenses, streamline reconciliations, and improve accuracy in financial reporting. - Finance and Budget Managers:
Optimize budgeting, forecasting, and financial decision-making with accurate, automated amortization schedules.
Getting Started
Set Up Your File
Enter your Company Name, GL Account Name/Number, and Year-End date at the top of the worksheet.
Input Your Data
In the clearly indicated input cells, enter your prepaid expense details:
- Vendor: Name of the supplier or service provider.
- Description: Brief explanation of the prepaid expense.
- Amount: Total prepaid amount.
- Addition Date: Date when the prepaid expense was originally booked.
- Amortization Start/End Dates: Always enter as month-begin and month-end dates respectively.
- Amortization Account: Enter the general ledger account on the income statement that the prepaid amortization will be recorded against.
Important Note:
This template calculates amortization strictly on a straight-line basis, assuming a simplified 360-day year.
Dates must start on the 1st of the month and end on the last day of the month. For more complex scenarios or different amortization methods, consider our Automated or GPT versions.
How It Works
The template automatically calculates your beginning balance at the start of the fiscal year, monthly amortization expense, and end balance at end month-end based on your inputs.
Monthly amortization and balances update instantly, providing clear and accurate month-end amounts.
Best Practices
Regularly update your prepaid expenses as new items are added or existing items are fully amortized.
Review calculated amounts monthly as part of your financial close process to ensure accurate financial reporting.
Support and Troublshooting
Ensure date entries match required formats (beginning/end of month).
Input data only in designated cells to prevent unintended changes in formulas.
If you experience issues, re-download the template from your purchase history or reach out to our support team at support@automatedaf.ai.