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Make all asset depreciation entries and adjustments

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 expenses.

Learn more about depreciation accounts

To do this task

  1. Go to the Company menu and click Planning & Budgeting.

  2. Click Decision Tools and then click Depreciate Your Assets.

  3. Read the background information, and compare different methods of depreciation.

  4. 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.

See also

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