Sage Intacct simplifies prepaid expense amortization

Sage Intacct streamlines prepaid expense amortization by automating journal entry creation and providing dimensional visibility, saving organizations time, increasing accuracy, and eliminating the need for manual spreadsheets.

Accounting for the amortization of prepaid expenses is a requirement not only for large enterprises, but also for growing small and midsize businesses. For many organizations, calculating amortization entries for prepaid expenses is a tedious, manual process that consumes significant time and resources. However, this doesn’t have to be the case. Sage Intacct includes a feature that automates this process, eliminating the need for spreadsheets, manual journal entry creation, and time-consuming double-checking. Here’s a quick overview of the feature and how it can help modernize your accounting operations.

Watch the on-demand webinar: Sage Intacct – Prepaid Expense Amortization Overview

Quick overview

For those unfamiliar with the term, prepaid expense amortization refers to the process of recognizing certain prepaid expenses over time, rather than all at once. A classic example is insurance: your business might pay an annual premium in January, but you need to amortize the expense over the 12 months of coverage. If your company pays $12,000 for a policy covering the next year, you first record a $12,000 prepaid asset. Then, each month, you recognize $1,000 as an expense, reducing the prepaid asset accordingly.

It doesn’t have to be difficult

Many companies still use spreadsheets to manage their prepaid assets, manually creating monthly journal entries to move balances. While this works, it is time-consuming and prone to error. There’s a better way: Sage Intacct includes a free add-on for automating prepaid expense amortization, transforming a manual process into a streamlined, automated workflow. Want to implement it or learn more? Contact Rand Group to get started.

Increase accuracy and save time

With Sage Intacct, you can recognize prepaid assets as soon as you enter an AP invoice, including key amortization details such as contract start and end dates. The software automatically creates the necessary journal entries for both the creation of the asset and its amortization. This automation shortens your monthly close and eliminates manual accounting steps, ensuring expenses are always recognized in the right periods.

Dimensional visibility

Dimensions are one of Sage Intacct’s most powerful features, and they shine when used with prepaid expenses. By tagging assets and expenses with dimensions like location, department, or project, you gain deeper visibility into your organization’s financials. You can also drill down from the amortization schedule to see associated journal entries and AP bills, improving auditability and transparency.

You’re always in control

Sage Intacct’s prepaid expense amortization feature puts you in control of how expenses are amortized. Whether you want to spread expenses evenly across a period or recognize them all at once on a future date, you can set the rules and let the system handle the rest. You get the accuracy and consistency of automated scheduling—without the manual effort.

To see how easy it is to use the prepaid expense amortization add-on in Sage Intacct, watch the on-demand webinar.

Next steps

Automating prepaid expense amortization is just one way Sage Intacct can help you transform your financial processes. As a trusted Sage partner, Rand Group can help your organization implement, optimize, and support Sage Intacct to maximize your efficiency and accuracy. Our team has deep experience in accounting automation and can help you leverage powerful features like dimensional reporting, AP automation, and more.

Contact Rand Group today to schedule a personalized Sage Intacct consultation or to learn more about best practices for prepaid expense management and financial automation.