Should I expense tax and insurance escrow payments monthly?

[Ben Bakhshi]

This is a bookkeeping question.

Every month we make a mortgage payment which includes: Principal, Interest, and Tax & Insurance.

I split the payment in Quickbooks Online, so every month our mortgage goes down, plus we have an interest expense on our books.

As for the Tax and Insurance, the money goes into escrow with our bank.

Initially I had created a current asset accounts in order to represent the escrow.

But that means that our income statement will not reflect these expenses until those are paid.

I am leaning towards expensing them every month, and then readjusting them in case the number is different. This will help us see better our P&L on a monthly basis.

Thoughts?