Introduction to this document
Monthly prepayments calculator
You can make adjustments to your monthly management accounts for any expense that spans more than one period, e.g. rent. Other common examples of prepayments are insurance, maintenance contracts and business rates. However, this involves extra work each month in recalculating the expense that relates to the period after month-end. Using a prepayments calculator can save you valuable time each month.
Insurance
For example, your company will have a number of insurance policies with differing premiums and renewal dates so the monthly prepayment calculation could look like this:
Insurance policy | Premium £ | Cover to | Days left at 31/12/12 | Prepayment (£) |
Employers' Liability | 500 | 17/10/2013 | 290 | 397.26 |
Public liability | 3,000 | 17/05/2012 | 137 | 1,501.37 |
Motor | 4,000 | 04/08/2013 | 216 | 177.53 |
Office | 2,000 | 28/02/2012 | 59 | 323.29 |
Total |
|
|
| 2,399.45 |
However, you have to spend time each month recalculating the expense that relates to the period after month-end.
Use our Monthly Prepayments Calculator to help save you time recalculating your insurance prepayments each month.
Once you have customised it to your own rent, insurances, maintenance contracts, rates, etc., all you have to do is enter the month-end date at the top of the spreadsheet for it to automatically recalculate the prepayment.
Document
02 Jan 2013
