Prepaid Income and Expenses

by Soccer League
(Canada)

We are a community league, we do registrations for Outdoor soccer in March and recieve money. We also send a cheque for registrations in March as well. Our year end is April 30.

How do I record these two transactions properly so they can be put in for the next fiscal year, and so the proper income/ expenses for the soccer program?

To properly allocate your income and expenses to the coming year, you need to set up two balance sheet accounts.

The first account should be a current asset called Prepaid Expenses. You can read about prepaid expenses and how to record the entries in my article on Home Business Taxes.

The second account you need to set up is a current liability account called Advanced Deposits. You can find out more about advanced deposits in my article on Common Bookkeeping Entries.

I wish you much success in the upcoming soccer year. Go team go! :0)