Is it possible to accrue a prepaid expense on a monthly basis?!?

Question

In specific; Provision for income taxes - State & Fedral is prepaid once every 3 months, Should I accrue the portion for each month? Is that possible and accepted by GAAP?! Please include any references!

My initial thought was "it's a prepaid expense" just like prepaid rent or insurance, which would be either amortized monthly, or at year end! But since it is not yet known how much of taxes to pay at the end of the year; the expense falls in the category of "provisions" which need to be accrued monthly!

Answer 1

The answer is yes. For a specific reference to GAAP, ask your CPA. people get paid for that kind of information.

Answer 2

Yes you can accrue it.