Before knowing how to record the fixed asset in QuickBooks, it is necessary to know what is QuickBooks and what is Fixed assets. QuickBooks is basically software that is designed for accounting. This software is designed by Intuit. Its target users are the business which is small and medium in size.
Now let’s know what is fixed asset. Fixed assets are especially required for the long term drive. These assets don’t have the facility of quick conversion. An example of quick assets is the land, some equipment.
Why record fixed assets in QuickBooks?
For the purpose of the business, you buy so many businesses, but not necessarily all equipment is to be funded. One must have a fixed asset account to track the depreciation of the fixed asset over a period of time. Quickbook gives you the facility to track your fixed asset online in a very simple way.
Know how to record Quickbooks fixed assets?
On the desktop of QuickBooks, the feature of Fixed asset management is available. The FAM is very useful in managing the fixed assets.
In order to keep a record of the fixed asset on QuickBooks, at first you have to create a fixed asset account for that equipment. And it is very easy to create a fixed asset account. For that, you have to follow only three steps. They are the following:
Step 1: First you have to go to the settings, then select the chart of account.
Step 2: Select New.
Step 3: Then select Fixed asset from the account type category.
Step 4: Then click on the Save button.
Now to keep a record of those fixed items, you have to follow the next few steps. They are the following:
Step1: At first you have to add that fixed asset in QuickBooks. For that, you have to go to the list section and then select the option of the Fixed asset item list
Step 2: An item bottom will appear.
Step 3: Then hit on the ‘new’ option button. And a new fixed asset item box will be opened. In this section, you have to fill up all the information about the asset. You have to provide details of that asset. And if you have a business on different dates then you have to mention the location of the asset also.
Step 4: Then click on the ‘ok’ button after putting all the information. And must check them once before to clock on the ‘ok’ button.
Will the depreciation of the fixed asset will be recorded automatically in QuickBooks?
No, the depreciation of the fixed asset will not be recorded automatically in QuickBooks. You have to do it manually by creating a depreciate expense account. You need to follow the following mentioned steps. They are:
Step 1: First you have to go to the ‘ Gear icon’ which is given at the top, then choose the Accounts and Setting option
Step 2: Then click on the ‘New ‘ button which is given in the right corner of the upper.
Step 3: Then select the ‘other expense’ option and then click the ‘Next’ button.
Step 4: Then choose depreciation and click ‘Next’.
Step 5:Then give the name of your depreciation and enter it in the box.
Step 6: Finally click on the Finish button option.
And all your work is done to keep records of your fixed asset and also their depreciation cost.
Fixing of Quickbooks error?
You might face some problems while keeping a record of the data of your fixed asset. This is due to some error in Quickbooks. In short, it is known as a Quickbook error. You can fix this QuickBooks error by following some simple steps. They are the following:
Step 1: First you have to download the Quickbooks Tool Hub.
Step 2: Click to open it.
Step 3:Then you have to update the windows.
Step 4: then you can manually set the windows and fix the error.
Every small and medium business person can easily manage their financial accounting by using the features of Quickbooks. It will help them to manage their business smoothly. By reading this article you must have got a clear idea about how to keep to the record of your fixed asset and to manage their depreciation cost. And you can solve the Quickbook errors also by reading this article.