Hello,
I've just been recording our expenses in detail for about 6 months now, and I wanted to get some input on how people record expenses such as taxes or insurance that are paid in one lump sum but really are "used" throughout the year.
For example, we paid off our house back in November, and for the first time we'll be paying our insurance premium directly to the insurance company this spring rather than through our mortgage escrow account. Same for property taxes. I'll probably pay both of these when due in a lump sum. I also just finished my 2014 tax return and had to pay the IRS for some freelance work I did throughout 2014 that didn't have taxes taken out.
So, does it make the most sense to record these types of expenditures as, for example, $1200, homeowner's insurance, May 2015, or to record an expenditure of $100 for each month of 2015?
Any thoughts?
Thanks.
pigpen