Adjust your accounts for payments you make in arrears or invoices that you pay in advance. You can spread payments or invoice amounts over several months to get a clearer view of your monthly profits.

Post prepayments and accruals automatically in Sage 50 Accounts, alternatively you can post manual accruals and prepayments using journals.

NOTE: The automatic Prepayment and Accrual feature isn't available in Sage 50 Accounts Essentials and Sage 50 Accounts Standard. To upgrade your software, leave your details, and we'll be in touch. 

Prepayments

You can use a prepayment to adjust your accounts for payments you've made before receiving the benefit. Examples include:

• Insurance premiums
• Rent paid in advance
• Legal retainer fees
• Other goods or services you paid in advance

Accruals

You can use an accrual to adjust your accounts for payments you make in arrears. Examples include:

• Utility charges
• Taxes incurred but not yet paid
• Interest incurred but not yet paid
• Wages owed but not yet paid
• Other goods or services received but not yet invoiced

Accruals often estimate payments based on previous amounts since you don't know the exact payment in advance.