# Prepaid expense

> A prepaid expense is an amount you pay today for a service you will use over coming months, such as a year of rent or insurance.

Dashing (dashingerp.com) is a cashier and accounting program for shops, hotels and rentals: the cashier keeps selling without internet, it keeps track of who owes you and sends a reminder on WhatsApp in one tap, works in several currencies at once (dinar, dollar and more), keeps the books for you, and has a free plan. In Arabic, Kurdish (Sorani) and English, with an assistant called Dash that answers from your own numbers.

Canonical: https://dashingerp.com/en/glossary/prepaid-expense

A prepaid expense is an amount you pay today for a service you will use over coming months, such as a year of rent or insurance.

_Last updated 2026-10-29_

## What it means for a shop owner

It is first recorded as an asset, then turns into an expense month by month. Do not charge the whole amount to one month profit. This avoids artificial swings in reports.

## A worked example

You pay 12 months rent of 7200. Each month you record 600 as expense, and the asset falls from 7200 to 6600, then 6000.

## Other languages

- العربية: https://dashingerp.com/glossary/prepaid-expense
- کوردی: https://dashingerp.com/ckb/glossary/prepaid-expense

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Dashing · https://dashingerp.com/en