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What method of tracking fixed assets is right for me?

Most businesses require equipment—sometimes very expensive equipment—to run. Vehicles, computers, office machines, manufacturing equipment, buildings, all require a substantial investment. Tracking the book value of such long-term assets over time is important; the amount by which they depreciate can affect the worth of your business and the size of your tax bill.

You must work with your accountant to make sure you're recording all the necessary information about your assets so both financial statements and tax returns are correct.

You have the following options for recording depreciation:

  • If your accountant uses the QuickBooks Fixed Asset Manager you can create fixed asset items to track your assets. Fixed asset items give you one location to store information about an asset such as date of purchase, purchase price, where you bought it, when and for how much you sell the asset, and so on. Your accountant can use the information from the fixed asset item to figure all your depreciation and post a general journal entry back to your company file.

    In addition, your accountant can create new fixed asset items for you and add them to your company file.

  • If your accountant doesn't use the QuickBooks Fixed Asset Manager you can still use fixed asset items to track information about your assets, such as date of purchase, purchase price, where you bought it, when and for how much you sell the asset, and so on.

  • If you have several fixed assets that you're tracking using only accounts and you don't need the additional information in QuickBooks, there is no need to change.

See also

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