PrePaid Insurance


Our yearly Insurance for our fiscal year October 1, 2023 to Sept 30, 2024 is a total of $4000.00, that is paid in 3 instalments ($1333.33) on Oct 1, Nov 1, and (1333.34) Dec 3. 

In previous years, our old accountant (now retired) had set up a reoccurring charge in the GJ and posted the payment monthly ($333.33 for 12 months). 

Should I be posting the insurance payment when it was taken from the bank? 

Example:  Credit Prepaid Insurance 1333.33 Debit Insurance Expense 1333.33 on October 1, November 1 and December 1st?

or the way she was as 12 equal payments over the year?