Prepayments and accruals schedule

What the prepayments and accruals schedule does

Accounts should show an expense in the month it belongs to, not the month it was paid. This workbook takes each payment that covers several months, works out the monthly cost, how much has been used and how much is still prepaid at your chosen date, and keeps a list of accruals, the expenses you owe but have not yet been billed for.

Who it is for

Bookkeepers and accountants closing the month or year, and owners who pay insurance, rent or subscriptions annually and want their profit shown correctly.

How to use the workbook

1. Enter the as-at date on the Prepayments sheet.
2. List each prepayment with the amount paid, the start month and the months covered.
3. List each accrual on the Accruals sheet with its amount.
4. Post the prepaid and accrued totals as journals at the period end.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Monthly cost and months used to the as-at date
• Prepaid balance for each item
• Accruals list with a total
• As-at date you can change
• Ready numbers for your journals

The workbook has these sheets: Instructions, Prepayments, Accruals. The main table has the columns Item; Date paid; Amount paid; Months covered; Cover starts; Cost per month; Months used; Expensed to date. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Prepay only what clearly covers more than one month.
• Reverse accruals when the invoice arrives.
• Check the start date, not the payment date, for the months used.
• Review the schedule at every month end.

Why keep this record

Accounting records let you answer three questions at any time: what came in, what went out and who owes whom. Kept consistently they also make tax returns, loan applications and the sale of a business much easier, because the evidence is already organised. Entering transactions the day they happen is far cheaper than reconstructing them at year end.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Good accounting records are a legal duty as well as a management tool: keep the supporting receipts and invoices with the workbook, and keep each year's copy for at least five years. Work on a copy, never on your only file, and back it up.

Read how to keep business records for KRA for the wider picture. See more accounting templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Guide: How to keep business records for KRA: what to save and for how long
• Guide: Bank reconciliation step by step: match your books to your bank
• Guide: Fixed assets and capital allowances explained for small businesses
• Another template: Balance sheet template
• Another template: Bank reconciliation statement
• Another template: Chart of accounts and general ledger

Need something different? Request a custom template, browse all guides or see every Excel template.