what is the difference between prepayment and prepaid expense 
prepayments and prepaid expenses are different from one another a prepayment means that you are just paying your bill earlier for example if you have a debt obligation such as a loan and you owe 1 000 next month but decide to pay that amount this month that is a prepayment a prepaid expense on the other hand is any good or service that you ve paid for but have not used yet 