Accounting Fundamentals8 min
The Complete Guide to Prepayment Amortization for Finance Teams
Learn how to correctly record, track, and amortize prepaid expenses so your balance sheet is always accurate — without Excel.
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9 of 12 tasks complete
1300 · Prepaid Insurance
1 prepayment
1310 · Prepaid Software
3 prepayments
1320 · Prepaid Rent
1 prepayment
Finance teams waste hours every month on tasks that should take minutes
Amortization schedules built in Excel lead to errors and hours of rework each month
Inconsistent journal entries create reconciliation issues and audit complications
Balance sheet reconciliations take hours as you hunt through spreadsheets
No checklist means tasks get missed, deadlines slip, and nothing is formally signed off
No audit trail, no sign-off record, no way to prove who checked what and when
Four simple steps to a faster, cleaner close
Import or enter your chart of accounts. Map balance sheet and expense accounts.
Enter prepayments, accruals, and other balance sheet items as they occur throughout the month.
Run through your month-end tasks grouped by category. Track progress and add custom tasks.
Reconcile balances as of any date, sign off the close checklist, and export journal entries.
Two powerful tools built for the way finance teams actually work
Always know exactly what makes up each balance sheet account. Select any date and instantly see every prepayment and accrual, with full amortization history.
1300 · Prepaid Insurance
1 item
1310 · Prepaid Software
3 items
2100 · Accrued Expenses
2 items
Run a structured, repeatable close process every month. Work through tasks by category, track progress in real time, and formally sign off each period.
Once a period is signed off, CloseKit monitors every Xero sync and flags any transaction posted with a date inside the closed period. Catch late entries automatically — no manual checking required.
Available on the Team plan which includes Xero integration, multiple users, and multiple entities.
Post-Close Alerts
January 2025 · Closed 3 Feb 2025
Xero synced 2 transactions into a closed period
Stripe payment processing fees
Annual AWS infrastructure invoice
Q4 payroll adjustment
More tools coming soon as CloseKit grows with your team
Purpose-built for the way finance teams actually work
Instant visibility into every balance sheet account. Reconcile prepayments and accruals in seconds, not hours.
A structured close checklist ensures every task is tracked, assigned, and completed before the period is signed off.
Know exactly what makes up your balances at any point in time. No more hunting through spreadsheets or missing entries.
Every change, every sign-off, and every period close is recorded. Full audit trail for every decision made.
Once a period is signed off, lock the checklist to prevent accidental changes. Your underlying data is always editable — only the checklist is locked.
Generate journal entries and amortization schedules as CSV exports, ready for your ERP or auditors.
Start free for 14 days. No credit card required.
Pro plan from £29/month — or save two months with annual billing.
Practical guides for finance teams managing prepayments, accruals, and month-end close
Learn how to correctly record, track, and amortize prepaid expenses so your balance sheet is always accurate — without Excel.
A practical checklist for finance teams to close the books accurately every month, with a focus on prepayments, accruals, and GL reconciliation.
Confused about when to accrue a cost vs when to prepay it? This guide explains the difference with clear examples and accounting treatment for each.
Run your close checklist, reconcile your balance sheet, and sign off every period — all in one place. Start free today.
No credit card required. No setup needed. Start in seconds.