A prepaid expense review checklist

Start prepaid expense review by writing what the support role prepares and what the business decides. The bookkeeper can gather records, follow the documented process, update the accounting system, and explain an exception. The owner, controller, or CPA should retain approval, payment release, accounting judgment, and policy exceptions.

List the source records, expected timing, format, account or period reference, and the evidence needed for prepaid expense review. If an item arrives through an unusual channel, record it and move it to a hold queue. Clear intake rules expose missing information before it becomes rework.

Break prepaid expense review into receive, check, record, compare, document, and hand off. Each step needs one expected output and one stop condition. Do not silently resolve an unfamiliar exception. Record what was checked, what is missing, and which named owner must decide.

Support each prepaid line with the invoice or contract, payment, coverage dates, allocation basis, prior amortization, current entry, and ledger balance. The client's retention policy may draw on IRS recordkeeping guidance and professional advice.

Give the bookkeeper enough access to complete prepaid expense review without giving the same person authority to approve their own work. Define the reviewer, deadline, review questions, and close event. Use named accounts and multifactor authentication for system access.

Flag expired coverage, renewed contracts without invoices, duplicate schedule lines, credits, cancellations, and balances with no remaining benefit period. The bookkeeper updates factual support; the controller or CPA approves amortization methods, impairments, write-offs, and reclassifications.

Review one annual insurance policy, one software contract, and one irregular service period from payment through monthly expense. Verify the remaining schedule against contract dates and ledger postings before broadening ownership of the rollforward.

Deliver a prepaid rollforward with additions, scheduled expense, credits, ending balance, remaining coverage, proposed corrections, and review status for every line. Related close and QA services are outlined in the operations support service and reporting and QA service.