Accounting for Prepaid Expenses with Advanced Excel Modeling
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Accounting for Prepaid Expenses with Advanced Excel Modeling

Learn Accounting for Prepaid Expenses with Advance Excel Modeling Techniques (Formulas & Functions, Power Query and VBA)
0.0 (0 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
502 students enrolled
Created by Prashant Panchal
Last updated 8/2017
Current price: $10 Original price: $50 Discount: 80% off
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  • 3 hours on-demand video
  • 4 Articles
  • 3 Supplemental Resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Formulas and Functions to prepare Accounting Schedules (such as prepaid exps)
  • Advanced Formulas, Tips and Techniques in Microsoft Excel for Accountants
  • How to Manage Prepaid Expenses accounting professional way (any other amortisation schedule)
  • Forecast and Budget Prepaid Expenses and its impact on three Financial Statements
  • Maintaining utmost accuracy while closing month end books (Accountants) for Prepaid Exps
View Curriculum
  • Basics of Double Entry Accounting
  • Basics of Microsoft Excel (also basics of Pivot Tables)
  • A Computer with Microsoft Excel Installed (preferably: 2007 or later versions)

Prepaid Expenses are everywhere! The most common type of prepaid expenditures is Mobile Phone prepaid vouchers/data plans and Insurances.

Accounting for Prepaid Expenses is fairly straight forward (and easy).

Prepaid Accounting activity is routine and critical for any Accountant. Accountant needs to accurately maintain record of all prepaid expenses to computer accurate Profit or loss each period end (monthly/quarterly and yearly)

And Therefore it is quite crucial to have a Robust Prepaid Expenses Schedule (for an Accountant/Analyst/Auditor) and  Microsoft Excel is great tool for this task

I will teach you basis of Prepaid expense accounting with simple example (Accounting Journal entries)

I will teach you hands on techniques to maintain a robust prepaid expenses schedule with which you can derive accurately:

  •    Portion of Prepaid Expenses to be charged to Income Statement/Profit and Loss statement each month
  •    Prepaid Expenditure Balances for Monthly Balance Sheet Reviews
  •    Forecast or Budget Prepaid Expenses for future periods
  •    Impact on Cashflow of Business due to prepaid expenses spending (high or low)

I  have used Microsoft Excel as a tool to prepare three kinds of Prepaid Expenses Schedules (Models), I will walk you through step by step process on how to prepare and maintain prepaid expenses models/schedules during this you will learn:

  1. IF Function (nested IF), Date Functions, Lookup and Match Function, Named Ranges, Data validation, Array Formulas and much more
  2. How to combine above functions to create powerful formulas
  3. Use of Power Query (Get and Transform) and Pivot Tables
  4. Excel VBA

At end of the course, you will have clear and practical understanding of how prepaid expenses accounting works and how you can use Microsoft Excel efficiently to calculate accurate prepaid expenses charge, prepaid expenses balance and Forecast Prepaid Expenses for future periods

Who is the target audience?
  • Any Excel enthusiast who wants to learn advanced Excel tricks
  • Accountants who wants to efficiently manage their Prepaid Expenses and Balance Sheet Reconcilations
  • Non-Accounting professional/Entrepreneurs who wants to estimate impact of Prepaid Expenses on their investment and Profit and Loss over fixed term
  • Analysts /Auditors who want to audit effectively for Prepaid Expenses
  • Business Budgets and Forecast Activities where prepaid expenses are crucial part of Balance Sheet and Income Statements
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Curriculum For This Course
41 Lectures
3 Lectures 03:34

Course outline, process flow for the entire course 

Preview 01:14

What are the minimum requirements for this course..

Preview 01:05

What is prepayments in simplest terms, with practical examples (from our day to day life) 

Prepayments Introduction
Prepaid Expenses Models (Complete Resources Download)
2 Lectures 00:56
Month End Date Prepaid Expesens Amortisation Calculation

Exact Prepaid Expenses Payment Date Calculation
Accounting for Prepaid Expenses
3 Lectures 07:59

Technical definition of Prepayments and Prepaid Expenses 

Preview 02:47

Practical example of prepaid accounting, Accounting journal entries as well Impact on Balance Sheet and Income statement (Monthly/Yearly) 

Prepaid Expense Example (How Accounting works for Prepayments)

What are the major benefits of Prepaid Accounting and prepaid expenses and similarly what the major disadvantages of having high prepaid expenses in books of account (or in Business as general) 

Advantages and Disadvantages of Prepaid Expenses
Excel Formulas Detailed (Intro to three Excel Models)
10 Lectures 49:08

What are the three types of Excel Models? What are the Functions will be used in preparing these PRO Excel Models? 

Preview 05:57

Complete Introduction to Date Function in Microsoft Excel with practical example ! 

Date Function

EOMONTH Function is very useful Function, especially in all kinds of Business Modeling and Financial Modeling ! 

EOMONTH Function

Quite useful Function while Excel Modeling, it converts texts showing in Date format (but not actual excel date), generally used to convert dates which comes  in reports from software and other application (text or csv files) 

DATEVALUE function

The IF function is one of the most popular functions in Excel, and it allows you to make logical comparisons between a value and what you expect

IF Function

VLOOKUP is a Function to lookup and retrieve data from a specific column in table. VLOOKUP supports approximate and exact matching, and wildcards (* ?) for partial matches. The "V" stands for "vertical". Lookup values must appear in the first column of the table, with lookup columns to the right.

Preview 06:46

The MATCH function searches for a specified item in a range of cells, and then returns the relative position of that item in the range. For example, if the range A1:A3 contains the values 5, 25, and 38, then the formula =MATCH(25,A1:A3,0) returns the number 2, because 25 is the second item in the range.

We will use this function to have dynamic column_index in VLOOKUP Function

MATCH Function

Returns the reference specified by a text string. References are immediately evaluated to display their contents. Use INDIRECT when you want to change the reference to a cell within a formula without changing the formula itself. We will be using this function to create dynamic table_array in VLOOKUP Function


By using names, you can make your formulas much easier to understand and maintain. You can define a name for a cell range, function, constant, or table. Once you adopt the practice of using names in your workbook, you can easily update, audit, and manage these names.

We will be using Named Ranges with Indirect function to make Vlookup Function dynamic 

NAMED Ranges (Name Manager)

All formulas : Match, Indirect, Named ranges comes to gather to make VLOOKUP more powerful function specially in dashboards and reporting 

Advanced Version of VLOOKUP Function (All other formulas combined)
Formula based Prepaid Expenses Model (Schedule)
6 Lectures 38:38

Control panel Tab is most important tab in the model, you have to update key inputs in this tab/sheet which will affect entire model's period and calculations 

Introduction to Model and Control Panel Tab (Important Sheet Tab)

Deep dive into model preparation, understating various dates function and how to automate date changes in model

Formula Based Prepaid Expenses Model - Deep Dive (Part 1)

Writing most important function of the model, IF or NESTED IF function. 

Formula Based Prepaid Expenses Model - Deep Dive (Part 2)

Model Finalisation and how to expand model to include more kinds of Prepaid Expenses 

Formula Based Prepaid Expenses Model - Deep Dive (Part 3)

In this lecture we will go through step by step exercise of preparing dynamic Prepaid Expense closing balances summary sheet. This is important to analyse data and summaries all prepaid expenses each month. We will use DYNAMIC VLOOKUP Function in combination with MATCH, INDIRECT and NAMED RANGES. 

This Dynamic VLOOKUP Function is quite powerful formula which you can also use in all kinds of Summary Reports and Dashboards 

Prepaid Expenses - Closing Balance Summary Tab (Formula Based Summary)

We will be using Excel's building Sheet Protection tool to protect all formula fields/cells in entire model (sheet). This will ensure that user can not accidentally delete any of our core formulas and break the model. We have to keep data inputs field/cells unlocked for key data inputs for the prepaid amortisation calculation. 

Protecting Formulas Cells and Fields in the Model
Calculate Prepaid Expenses Amortisation from Exact Start date (Prepayment date)
7 Lectures 32:35

Brief Introduction about Exact date prepaid exps amortisation calculation. 

Preview 03:08

Changes in existing Formula Based Model that we have prepared in Section 4, We have to update our main prepaid exps amortisation formula and some other formulas to have model calculate exact prepaid exps calculation 

Formulas update and Model Changes for Exact Prepaid Exps Calculation

Wiring formulas especially main IF (Nested IF) function to calculate exact Prepaid Exps 

Formulas Update for Exact Date Prepaid Exps Amortisation (Part 1)

Formulas Update for Exact Date Prepaid Exps Amortisation (Part 2)

Formulas Update for Exact Date Prepaid Exps Amortisation (Part 3)

Finishing up the model for exact date prepaid exps amortisation 

Formulas Update for Exact Date Prepaid Exps Amortisation (Part 4)

I will show you how to use data validations to make sure your key inputs cells are not filed up with accidental text or other kind of inputs (basically anything other than Date format) also we have to ensure that date input in Column C should be as per month end in Column

Data Validation Controls (Enhancing Data Input Controls with Protection)
Prepaid Expenses Summary with Power Query and Pivot Table
7 Lectures 33:31

Brief Introduction to Power Query and Pivot Table Prepaid Summary Model

Preview 05:49

Power Query and Pivot Table Summary - Deep Dive (Part 1)

Power Query and Pivot Table Summary - Deep Dive (Part 2)

Power Query and Pivot Table Summary - Deep Dive (Part 3)

Power Query and Pivot Table Summary - Deep Dive (Part 4)

Power Query does not work with sheets with protection as the source file. So in this scenario, we will have to unprotect all individual prepaid expense sheets but in that case, there is change of accidental data errors due to inputs and formula corruption especially our main amortisation IF formula

We can use Array formulas instead, in this lecture I will show you how to write the (update existing) formula. Array formulas will provide some form of protection if not complete protection. 

Using Array Formulas to Add Formula Proection
Advanced VBA Prepaid Expenses Amortisation Model
2 Lectures 05:59
Changing Macros Security in Excel

VBA Coding enhances a lot of features in our existing Formula Based model, Let's go through the lecture and understand how VBA Coding works and you model becomes like a mini program! 

Complete Walkthrough - Advanced VBA Prepaid Expenses Amortisation Model
Closing Remarks and Thank you
1 Lecture 01:47
Thank you
About the Instructor
Prashant Panchal
3.8 Average rating
58 Reviews
3,219 Students
2 Courses
Finance Professional (ACA, B.Com)

I am a seasoned Finance Professional (Chartered Accountant) with more than a decade of experience in the field of Finance, Accounting, Auditing and Operations having worked with many (diversified) industries throughout my career

I have hands-on and thorough practical knowledge and experience in routine accounting challenges that every accountant comes across (gained through tons of trials and errors with practical accounting issues faced and solved during my career)

Being an Excel enthusiast, I love report automation while keeping accuracy and reliability of any accounting or management report at 100%. I have automated and enhanced daily accounting reporting tasks and improved reporting styles which have saved tons of hours of work for my colleagues and organisations

I have substantial experience gained throughout my career to improve and automate reports using Microsoft Excel:  
  ♦ Advanced Formulas and Functions
  ♦ VBA
  ♦ Pivot tables
  ♦ Power Query
  ♦ Power Pivots
  ♦ What if analysis tools (Solver, Goal Seek, Data Tables and scenario manager)