How is a balance in a prepaid account rolled over to the following year?
submitted by John

tom_morrello

You'd carry it forward as an asset, since it's a useful thing for the business. At year-end, the any remaining prepaid amount is recorded as a current asset on the balance sheet, and then it's just transferred to the next period's prepaid account when the new period begins.

Know Youdint

If you have some money left in your prepaid account at the end of the year, you just keep that balance for the next year. It stays on the books as an asset, and when the new year starts, that balance is still there.