Why would someone pay amounts up front? Surely voluntary you wouldn\u2019t give away money before the date of payment has really arrived. Or is it so? Truth of the matter is that prepaying is a normal course of business for some types of expenses and done more often enough.\u00a0<\/p>\n
In essence prepaying is usually used for payments made for longer periods \u2013 annual charges for an example. Prepayments can also be made for partial payments for events, marketing purposes etc. There are those, which are regular, and more common \u2013 professional charges, subscriptions, rents paid up front, payments made for expenses relating to future periods more or less. And then there are more rare ones, which don\u2019t happen as often \u2013 one off payments relating to future periods. It\u2019s essential to carefully read all invoices and understand the period the expense really relates to. The key question is \u201cFor which period is this expense being made for?\u201d<\/p>\n
As a side note, another reason for prepaying some of those expenses is simple actually \u2013 you\u2019ve made your payment and you\u2019re entitled for the service. In other words, you\u2019ve made your payment and don\u2019t have to save up for it anymore.<\/p>\n","protected":false},"excerpt":{"rendered":"
Why would someone pay amounts up front? Surely voluntary you wouldn\u2019t give away money before the date of payment has really arrived. Or is it so? Truth of the matter is that prepaying is a normal course of business for some types of expenses and done more often enough.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,32],"tags":[],"class_list":["post-3405","post","type-post","status-publish","format-standard","hentry","category-1-basic-accounting","category-1-4-prepayments"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=3405"}],"version-history":[{"count":3,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3405\/revisions"}],"predecessor-version":[{"id":3408,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3405\/revisions\/3408"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=3405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=3405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=3405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}