Fixed assets such as furniture, computers, vehicles, and buildings
contribute to the operating capacity of a business over many years. Because of
their long-term value, fixed assets are treated differently than other
expenses. Typically, you expense the purchase price of the fixed asset over its
useful life, not just the year in which you made the purchase.
Each fixed asset should have its own "parent" asset account in the
chart of accounts, and two subaccounts: one for the original purchase price of
the item, and the other for its accumulated depreciation. For example, you
could have a "Company Vehicle" parent account with two subaccounts,
"Purchase" and "Depreciation."
You will also need a separate expense account to track all depreciation
To do this task
Go to the Company menu and click Planning & Budgeting.
Click Decision Tools and then click Depreciate Your Assets.
Read the background information, and compare different methods of depreciation.
Talk to your accountant, and decide how you want to track depreciation in your business. If your accountant uses QuickBooks Fixed Asset Manager, he or she can determine the depreciation of your assets and update your company file with that information.
Fixed asset tracking and the Fixed Asset Manager