Personal Financial Budget, properly reflection ?
How does one account for prepaid expenses in Money? Let's say I pre-pay my
insurance. It will come in as an expense but will not reflect on my budget
properly??
GAAP treatment of prepaid expenses is outside the normal range of practice
discussed here. You can still do it, though. Just create a 'bank' account
called 'Prepaid Expenses'. Make it 'in budget' on the details page of the
account.
Pay insurance by a transfer to that account. The insurance payment will not
be reflected in the budget, but will be reflected in cash flow. Scheduled a
bill to pay the periodic allocation of the expense, using the prepaid
expenses account as the source. Categorize to insurance. Those periodic
bills will be reflected in the budget.
Are you doing this for a small business that has to provide financial
statements to a bank, or something? Or for your personal financial accounts
only? If the latter, why bother?