List the vendor, original amount, service period, release cadence, account, and remaining balance. The schedule should have one owner and a review date.
Run a prepaid expense rollforward workflow
Give bookkeeping support a clear process for tracking prepaid balances, monthly releases, source evidence, and review exceptions.
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The short answer
- Start with the approved schedule.
- Tie releases to service periods.
- Escalate changes before posting.
Start with the approved schedule
Match each release
Compare the monthly release to the contract, invoice, and service period. The IRS recordkeeping guidance recommends records that support entries and reported expenses.
Hold changed items
If a contract is canceled, renewed, refunded, or changed, place the row in an exception queue. Do not silently extend the schedule or change the amount.
Connect the close packet
Use the close exception log and monthly review agenda to make reviewer questions visible. Retain the original schedule and every approved revision.
Reconcile and improve
Tie the ending schedule to the general ledger, inspect old balances, and record the reason for any correction. Update the procedure after two reviewed cycles.
Questions owners ask
What is the bookkeeper responsible for?
Maintaining the schedule, preparing recurring entries, and flagging missing or changed support.
Who approves a new treatment?
A finance owner or qualified adviser approves policy and unusual accounting treatment.