Managing prepayments in Excel vs automating on Xero
Spreadsheets are the default for prepayment schedules — but they don't reconcile themselves. Here's how a spreadsheet compares with automating on top of Xero.
This walkthrough compares managing prepayments in Excel against automating them in Xero using WorkWithLottie, covering release schedules, month-end journals, and reconciliation. It helps bookkeepers and accountants handling multiple prepayments or client books reduce manual effort and eliminate spreadsheet errors.
Most teams start with a prepayments spreadsheet. It works — until the volume grows, the tabs multiply, and month‑end becomes a copy‑paste marathon. Here's an honest comparison.
The spreadsheet approach
Pros: free, flexible, everyone knows Excel. Cons: manual journals every month, no live link to Xero, easy to break a formula, painful across multiple entities, and it never reconciles itself — you check it by hand.
Automating on top of Xero
Pros: reads prepaid costs straight from Xero, builds the release schedule automatically, posts (or holds) the monthly journals, keeps a live register, and reconciles the balance back to Xero. Scales across many clients without extra tabs. Cons: a subscription cost, and a short setup to map your nominal codes.
Side by side
| Spreadsheet | Automated on Xero | |
|---|---|---|
| Monthly journals | Manual | Posted for you |
| Reconciliation | By hand | Automatic |
| Multiple entities | Many files | One dashboard |
| Error risk | High | Low |
| Audit trail | Limited | Full |
When each makes sense
A spreadsheet is fine for a handful of prepayments in a single entity. Once you're juggling dozens of prepaid costs — or several client books — automation pays for itself in time saved and errors avoided.
More on Comparisons
All guidesManual vs automated month-end journals
Should you keep posting month‑end journals by hand, or automate the recurring ones? A practical comparison for teams on Xero.
ReadXero's built-in options vs a dedicated accruals & prepayments tool
Xero can handle repeating journals and fixed assets — so when do you need a dedicated accruals and prepayments tool? An honest look.
ReadLet Lottie handle this for you
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