Entering a cash reserve for future lease payments

In some cases, you may wish to reserve cash in your forecast to cover future payments on a lease. (This is sometimes referred to as "prepaid rent.) To represent this scenario in your forecast, you can use a short-term asset entry.

In the example below, we're creating a cash reserve to cover rent payments of $1500 per month for the first year of business. If you need to create a cash reserve for a future lump-sum payment, read Entering a cash reserve for a future lump-sum payment.

  1. In the Forecast tab, click Assets:
  2. On the Assets page, click the Add Asset button:
  3. Give this asset a name. Click Next to continue.
  4. In the next overlay, select One-time amount, and enter the amount of the reserve. Select the month in which the funds will be placed in reserve. Click Next to continue:
  5. Finally, set the type of asset to "Current," and select the number of months this reserved will be used. Since our example represents future rent for one year, we've selected 12 months below:
  6. Click Save & Close.


In the Asset table below, you can see that the reserve is reducing by the rent amount of $1500 each month, because this asset is calculating amortization over 12 months.




  • Once you begin making the lease payments, you'll want to put an Expense entry in your forecast to represent them.
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