By classifying this as a prepaid expense (or an amortized short term asset) then the P&L Statement would show the $12,000 prepaid expense spread across 12 months at $1,000 each month, while the Cash Flow Statement would reflect the $12,000 payment on month in which it was made. Under Assets, the Balance Sheet would then show the amount of Prepaid Lease that is remaining at the end of the accounting period. You start here, today, with certain resources and abilities. You want to get to a there, a point in the future (usually three to five years out) at which time your business will have a different set of resources and abilities as well as greater profitability and increased assets. Tim Berry, president of Palo Alto Software Inc., responds to a reader seeking advice on finding a low-cost writer to help with a business plan. These tools can be your first step towards small business success. Find business planning, finance, sales, marketing and management templates & guides. Add your favorite articles, videos, podcasts, and more to your Queue so you can enjoy them anytime on any device. You can visit our small business encyclopedia to learn more about business plans or our FormNet area to get the necessary forms to get started.