UNIKBOK / Swedish bookkeeping examples / Prepaid expensesPå svenska
How to book a prepaid expense
In December you pay SEK 1,000 in rent for January. The cost belongs to the next financial year.
How to book it
Both methods – at year-endBoth methods
| Account | Account name | Debit | Credit |
|---|---|---|---|
| 1710 | Förutbetalda hyreskostnader (Prepaid rent) | 1,000 | |
| 5010 | Lokalhyra (Premises rent) | 1,000 | |
| Total | 1,000 | 1,000 |
The entry is reversed at the start of next year. With a simplified annual closing (förenklat årsbokslut), amounts below SEK 5,000 do not need to be accrued.
Common mistakes
- Forgetting the reversal in January, so the cost never hits the right year.
The UNIKBOK accounting software has a ready-made template for prepaid expenses. Take a photo of the document, and the software suggests the accounts, VAT and journal entry for you.