Creating a Fixed Asset : QuickBooks® ManualSetting up a Fixed Asset in QuickBooks is a simple and straightforward process. Unfortunately, managing that Fixed Asset does result in some complications, even for a small business, because of tax laws requiring proper accounting for depreciation, major repairs, improvements, and retirement. While these instructions show the basics of creating a Fixed Asset and posting a journal entry for straight-line depreciation, it is important for each company to work with its tax professional to determine the appropriate method by which to account for each asset.
New Account Setup Example
- To begin, open the Chart of Accounts under the Company heading; this may be done through either the home page or the menus.
- Click the + sign at the lower-left corner to open the New Account window.
- From the drop-down Type menu, select Fixed Asset, give it a descriptive name, and provide a relevant description.
- If only individual, rather than mass, Fixed Asset accounts are utilized, then it may be useful to setup the equipment name and model number in the Name field and list the serial number in the Description field.
If you get any difficulties above you can contact to quickbooks pro tech support number and they will guide you that how to get things done. Some businesses may wish to take a Fixed Asset approach that seems easier, and simply call this account “Property, Plant, & Equipment”, have it contain all purchase and depreciation transactions, and simply click OK at this point. This is not the optimal approach and it will result in significantly more time, expense, and hassle, come time to file taxes, modify or retire an asset, or respond to any sort of audit. It is highly recommended to stick with the approach of specifically defining each asset