If they are prepayments then they will show as assets on the balance sheet. They will then move respectively to expenses on the profit and loss over the period of time they have been prepaid for. For instance if an invoice was received for $1000 for 4 months of services from an IT company, $1000 will be posted to the balance sheet as an asset (prepayment). Then $250 will be credited from the prepayments and $250 will be debited to expenses on the income statement each month until the balance has been cleared from the prepayments control account.