Close & reporting
Prepaid schedules
Insurance, software subscriptions and free zone licence fees paid up front for a UAE business spread across the months they actually cover, instead of hitting one month's profit and loss all at once and distorting that period's numbers for no operating reason.
Management report
Illustrative client · August 2026
AED
| Line | Aug | Jul | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
One bill, several months of benefit
An annual insurance premium, a yearly software subscription, or a free zone trade licence renewal paid in one transaction should not land as a single oversized expense in the month it happened to be paid. Spreading that cost across the months it actually covers is what keeps one month's profit and loss comparable to the next, rather than distorted by the timing of a single payment.
What usually ends up on this list
Free zone licence and establishment card renewals, annual insurance, prepaid rent and yearly software subscriptions are the recurring items most UAE businesses carry on a prepaid schedule, each logged with its term and its monthly release amount from the day it is paid.
The mechanics behind it
A schedule tracks each item, releases the correct monthly amount to expense, and reconciles the remaining prepaid asset balance on the books every close, with anything approaching renewal or expiry flagged ahead of time rather than discovered the week it lapses.
Not a Corporate Tax decision
How a prepaid amount appears in the management books is a presentation choice, not automatically how it gets treated on the Corporate Tax computation. That call sits with the tax agent listed with the FTA who reviews the return, not with this schedule.
Kept current
Maintained inside the accounting file already holding the business's fixed asset and expense records, updated the same week the monthly close happens, and checked by a senior reviewer before anything is finalised.
Questions
Frequently asked questions: Prepaid schedules
Is the prepaid schedule reconciled to the balance sheet each month?
Yes, the prepaid asset balance is checked against the schedule every month as part of the close.
Does a prepaid schedule change our Corporate Tax return?
It affects your management books, not automatically your tax treatment; your tax agent decides how prepaid amounts are handled when the return is prepared.
Does this cover our free zone licence renewal fee?
Yes, an annual free zone licence or visa fee is a common prepaid item, spread across the months the licence period actually covers.
What typically ends up on a prepaid schedule?
Annual insurance premiums, yearly software licenses, prepaid rent and retainers are the most common items.
Does a prepaid schedule change my tax return?
It affects your books, not automatically your tax treatment; your tax preparer decides how prepaid amounts are handled for tax purposes.
What is included in prepaid schedules?
Prepaid schedules covers prepaid expense schedule listing each item, term and monthly amortization and monthly journal entries releasing the correct amount to expense. The exact scope is agreed and set out in writing before work starts, so you know precisely what is and is not covered before the first deliverable arrives.
How is prepaid schedules priced?
Pricing for prepaid schedules depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
Related services
- Close & reportingAccrualsExpenses and revenue recorded in the period they actually happen, even when the invoice or cash has not moved yet, so the month's numbers reflect that month's activity.
- Close & reportingMonth-end closeA repeatable monthly close that ties every account back to source records and hands you a finished set of financials on a predictable date each month.
Industries
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.