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Does anyone have a software recommendation for amortizing prepaid expenses?

Twila Shelton's Profile

I am searching for a software that will amortize and produce reports for amortization entries as well as unamortized balances, similar to a depreciation program. Currently we are using an excel work sheet. An recommendations would be appreciated.

Answers

Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

I use Excel also. I am curious why the need to have reporting similar to a depreciation program? I set up my prepaid expense and then create a memorized transaction to expense the charge every month until fully expensed. I keep the spreadsheet to ensure everything has been accounted for.

Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

Twila
Christie's example is a great one of exploiting features of your accounting system. Look at your software's online help, user training manuals, consult others in the User Group (if your software has one), or contact your software VAR for help...you won't have to reinvent the wheel here.

The only twist I would add is to ask whether your needs include some kind of allocation rule to be applied (e.g. allocate $ based on monthly actual FTE or # contracts or sq. ft etc). And also examine whether your GL structure allows you to use a segment/user defined field that could help track balances by item, if that is what you need.

Twila Shelton
Title: Accounting Supervisor
Company: Pre-Paid Legal Services, Inc
(Accounting Supervisor, Pre-Paid Legal Services, Inc) |

We have over two hundred items (software licenses, software and hardware maintenance, memberships, etc) allocable to many departments. We have no issues amortizing and summarizing general ledger entries each month, but a software would provide better security and accuracy for internal controls.

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