How To Use Fixed Asset Manager in QuickBooks Desktop

Fixed Asset Manager and QuickBooks Desktop contain different data files. So we need to learn how we add or fix asset managers in QuickBooks Desktop. They are used to manage the financial information which is related to fixed assets. By using a Fixed Asset manager we can calculate the reduction in the value of Fixed Assets with the help of those which are published by the Internal revenue Service (IRS). Functions and work we can perform with the help of Fixed Asset Manager are:

  • You are able to generate various reports or forms of depreciation.
  • You are able to enter Asset information very easily.
  • It is also used by Depreciation calculation.
  • Even you are able to initiate the journal entries.

Types Of Information Flow between QuickBooks And Fixed Asset Manager

Information Required To Fix Asset Manager In QuickBooks Desktop

Here we are including those information which are required to set up from QuickBooks to Fixed Asset manager are:

  • Company name and Company Address
  • A federal tax ID is required.
  • An account Chart is required.
  • Income tax used form is required.
  • Company contact numbers which are working.
  • There should be every single information related to assets.

Information Required To Fix Asset Manager To QuickBooks Desktop Asset Number

  • A list of assets has been added to the Fixed Asset Manager.
  • You need to give the entire book value at year-end.
  • There are year-end collected depreciation
  • There should be every single detailed information that is related to assets.

Role Of Program In Entering And Tracking The Assets

QuickBooks Fixed Account Manager

  • Enter the asset information
  • You can calculate the depreciation cost as per the standard issued by the Internal Revenue Service (IRS).
  • Here you can initiate the General Journal Entries procedure.
  • We can easily generate and create different types of Depreciation Reports and forms.

QuickBooks Desktop

  • Enter the assets information here as well.
  • Now you will get a customized report.

Steps To Set Up Fixed Asset Manager In QuickBooks Desktop

Set Income Tax Form

Create the New QuickBooks Company Files

  • From the No Open Company window, select the Create a new company
  • Then click on the Detailed Start button.
  • Then the Easy Step Interview window will be opened and there you will ask a question as How is your company organized? And some options will be shown as Sole Proprietorship, LLC, LLP, etc
  • Then you need to select the income tax form.
  • Then finish creating your company file and your file will be created.

Already have an Existing QuickBooks Desktop Company Files

  • First, go to the menu bar and click on the Company menu
  •  Then select the My Company option.
  • Then click on the Pencil icon and select the Report Information from the left side.
  • Then click on the Income Tax Form used and select the income tax form which will be used for your business.
  • Then click ok.

Set General Ledger account in QB Desktop

Here are two methods of tracking the asset. They are Minimal Account Setup and Ideal Account Setup.

Minimal Account Setup is that in which the minimum number of accounts is used. Ideal Account Setup is that in which you can create a separate account per fixed asset. With the asset account, Fixed Asset Manager depreciation in the Depreciation account or Expense account and offset entry on the Accumulated Depreciation account.

Setup of Minimal Account

  • Fixed Asset Account — Fixed Asset.
  • Accumulated Depreciation Account — Fixed Asset.
  • And Depreciation Expense Account — Expense.

Ideal Account Setup in the Chart of Account

  • Create a Fixed Asset account
    • Go to the Chart of Accounts, and right-click on it, and select the New option.
    • Then select the Fixed Asset and fill in all the information required and at last click on the Save and Close option.
  • Then add two sub-accounts for the fixed asset account that you have created. Here one sub-account will be used for tracking the cost and another sub-account will be used for tracking the accumulated depreciation. Then you can easily tell the book value and accumulated depreciation cost of assets in a few seconds.
    • Go to the Chart of Accounts, and right-click on it, and select the New option.
    • Then select Fixed Asset and then select parent account and fill in all details.
    • And click the Save and Close option.
  • Create the Expense Account for tracking the depreciation expense and name it
    • Go to the Chart of Accounts, and right-click on it, and select the New option.
    • Then select Expense
    • Fill in all the required details.
    • At last click on the Save and Close option.

Now Fix Account Manager Client Wizard

  • Go to the Accountant menu
  • Then select the Manage Fixed Asset
  • Then a new QB FAM window will open and click according to your business click or choose one option out of four option as:
    • Create a new Fixed Asset Manager Client
    • Then Transfer prior-year FAM client
    • Then reconnect accountant copy with FAM client file
    • At last, restore the current year QB FAM client file.

FAM client Wizard

  • General:- Summary of company information is shown which is taken by QB Desktop Company File.
  • Date:- Here you have to enter the beginning and end date as all the calculation is based on the defined period.
  • Basis:- Set the tab which is visible at the bottom half of the Asset screen.
  • Methods:- Set default depreciated method.
  • Asset Synchronization:- It controls data that can move or can not move in FAM and QuickBooks Desktop.

Add Asset in FAM

  • Go to Toolbar and select the Add option
  • Then select Add asset from the Asset menu.

When you will add the asset then you can add description, purchase order number etc. and then add description calculation information.

Type of Asset Synchronization

Automatic Synchronization

  • Go to FAM QB menu and select Asset Synchronization
  • Then go to From QuickBooks tab and check Automatically when QB FAM open and both new and modified asset items.
  • Then click ok and close FAM

Manual Synchronization

  • Go to the Fixed Asset Manager QB menu and select the Asset Synchronization option.
  • Then go From QB tab and check Manually by selecting Update Asset from QB.
  • Then select ok and refresh the FAM
  • Then you can manually sync the data and then restart the FAM
  • Then go to Fixed Asset Manager QB and choose one option from Update Asset from QB and Save Assets to QB to sync.

Conclusion

So, here we have discussed the method to add the Fixed Assets Manager in QuickBooks Desktop. You can easily add it by the following steps. If you will be facing any issue after using these steps you can contact our support team or can contact our QuickBooks ProAdvisor and solve all the issues.

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