Quick Start

If you understand prepaid accounting, follow these steps to get up and running quickly.
1

Set Up

Enter your Company Name, GL Account information, and fiscal year-end at the top of the worksheet.

2

Data Entry

Enter each prepaid item in the designated input rows.

3

Calculate

Amortization calculates automatically as inputs are entered.

4

Review

Review monthly amortization and ending balances in the schedule.

Getting Started

Complete these steps before relying on the output for month-end close or reporting.

Enter the following values at the top of the worksheet:

  • Company Name
  • GL Account Name / Number
  • Fiscal Year-End

These values are used for labeling, reporting context, and schedule alignment.

Enter prepaid expenses in the clearly designated input rows.

Required fields:

  • Vendor – Name of the supplier or service provider
  • Description – Brief explanation of the prepaid expense
  • Amount – Total prepaid amount
  • Addition Date – Date the prepaid expense was originally booked
  • Amortization Start / End Dates –
  1. Start date must be the first day of a month
  2. End date must be the last day of a month
  • Amortization Expense Account – Income statement account used for monthly expense recognition

This template calculates amortization strictly on a straight-line basis, assuming a simplified 360-day year.

Dates must:

  • Begin on the 1st of the month
  • End on the last day of the month

For more complex scenarios or automated journal entry output, consider Prepaids Automated.

How It Works

This section explains the underlying logic for audit support and validation.

The template automatically calculates:

  • Beginning prepaid balance at the start of the fiscal year
  • Monthly amortization expense
  • Ending prepaid balance each month

Amortization updates instantly as inputs change, allowing for clean month-end close support and accurate balance tracking.

The model is designed for:

  • Simplicity
  • Transparency
  • Audit clarity

No macros. No Power Query. No hidden logic.

Best Practices

  • Update prepaid entries as new items are added or fully amortized
  • Review calculated balances monthly as part of close procedures
  • Ensure all dates follow the required month-begin / month-end format
  • Avoid overwriting calculated cells—input only in designated areas

These practices help ensure accuracy and consistency in financial reporting.

Support & Troubleshooting

If something isn’t working as expected, review the items below before reaching out.
  • Ensure all date entries follow required formats (beginning/end of month)
  • Enter data only in designated input cells to prevent unintended changes
  • Verify amortization dates align with reporting periods

If issues persist:

Still need help? Email support@automatedaf.ai and include a screenshot of the issue.