How To Use Fixed Asset Manager (FAM) in QuickBooks Desktop

Want to know how to use a fixed asset manager in QuickBooks Desktop? learn it with this article, here we are to provide details of effective solutions that enable you to use FAM in QuickBooks.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). So go through the article the solution will be yours and if not fixed learn multiple ways by contacting our QuickBooks ProAdvisor through Toll-Free No. +1-855-525-4247

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. 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 for Depreciation calculation.
  • Even you are able to initiate the journal entries.

Steps To Set Up Fixed Asset Manager In QuickBooks Desktop

Steps to assign an account to multiple assets

When you convert the asset data from one version of QuickBooks Desktop to another version or when importing assets into the FAM, can leave some common ledger accounts (G/L accounts). These must be manually assigned to the FAM. To do this follow the below steps.

  1. Go to your Fixed Asset Manager.
  2. Next, click on the Schedule tab, and highlight all the assets that you want to assign to a particular account.
  3. Now, give right-click on the selected assets and click on the Assign G/L Accounts to Assets.
  4. Next, click on the account, and later click on OK.

Steps to change or add the depreciation method/setting

To correctly calculate current and prior depreciation for FAM you may need to change or add the depreciation method for a fixed asset.

  • Go to your Fixed Asset Manager.
  • Click on the File menu, look for the Client Information, and click on it.
  • Now, look for the Methods tab, and choose the appropriate depreciation method for the depreciation basis.
  • Click on OK to save all the changes.

Steps to depreciate an old asset

Your business may already have some fixed assets before deciding to use FAM. Go with the below steps to record your fixed assets with accurate depreciation.

In QuickBooks Desktop

  • Go to the List menu, and click on the Fixed Asset Item List.
  • Next, click on Item, and choose New.
  • Insert all the necessary information, and click on the OK to quit the New Item window.

In Fixed Asset Manager

  • When the Asset Synchronization Log window opens on your screen, then click on OK
  • Go to the Schedule tab, and look for the asset you created, and double-click on it.
  • Next, click on the Federal column, drag down to the Prior depreciation row, then select the amount displayed.
  • Now, you need to modify the changes by adjusting the AMT, ACE, Book, State, and Other columns. And click on Save

Important Tips

  • When you enter the current date in the Date placed in the service field, then in such a situation your previous depreciation will be grayed out.
  • It is necessary to know the amount of depreciation booked in previous years before continuing. If you do not know this information, contact an accountant for guidance.
  • It is important to understand the amount of depreciation booked in previous years before continuing. If you are not sure about this, then we advised you to contact an accountant for guidance.

Export QuickBooks Fixed Asset Items into ProSeries Form 4562

QuickBooks Fixed Asset Manager can export data to only one year of processes. That is why the QuickBooks Desktop is based on a calendar year meanwhile the FAM and procedures are based on the tax year. This means that QuickBooks Desktop 2017 comes with FAM 2016 which can be exported to Pro Series 2016.

  • Go to the ProSeries, and generate the file with the form, the same form in the QuickBooks Desktop.
  • Next, open your QuickBooks Desktop:
    • Now, generate the File Asset manager. To do this, follow the below steps:
      • First, go to the Lists menu, and click on the Fixed Asset Item List.
      • Click on Item, and then choose New.
      • Later, insert the Fixed Asset information, and click on OK.
    • Next, you need to Import the QuickBooks FAM information directly to the Fixed Asset modules. To do this check out the below steps.
      • First, go to the Accountant menu, and click on Manage Fixed Asset.
        If you are using the QuickBooks Desktop Enterprise then go to the Company and next click on the Manage Fixed Asset
      • Now click Create a New Fixed Asset Manager client, select OK and click on twice.
      • Insert the date, and click on Next.
      • Next, click on Applicable Basis, and click on Next.
      • Click on the Default Depreciation Method for every Basis, and click on Next.
      • Choose the method on how you want the fixed asset items given in the Fixed Assets Module from QuickBooks Desktop, and click on Next.
      • Click on the type of assets to save to the Fixed Asset Item List in QuickBooks, and then click on Next.
      • Click on Finish, then OK in the Asset Synchronization Log window.
  • Go to the Fixed Asset Manager and follow the below steps
    • Click on the File menu, select Export, next click on the ProSeries Tax, and click on Export.
    • Select the file from the Export ProSeries Tax Client File list.
    • Click on the client file, and next, select Export.
    • Click on OK. You will receive the confirmation message shortly. The export has been completed successfully.
  • Open the ProSeries to ensure that:
    • When you open the client file, then the import process must show Completed.
    • All assets from QuickBooks Desktop must show in the asset list of ProSeries Form 4562 Depreciation and Amortization Schedule and Asset Entry Worksheets.

Import Fixed Assets from Excel into the Fixed Asset Manager

It is very easy to transfer your data from third-party applications to FAM as long as they can export data as a Comma Separated Value (.CSV) file. Follow the below steps to do this.

  • Go to your Fixed Asset Manager.
  • Click on the File menu, and click on Import.
  • Choose Comma Separated (CSV) to begin the Import Wizard.
  • Go with the on-screen instructions to finish the import.

Change the basis on which to post a journal entry

It is permissible to modify or change the basis (Federal, Book, AMT, ACE, State, Other) on which you are posting journal entries.

  • Go to the Fixed Asset Manager.
  • Next, click on the QuickBooks menu, and choose the Post Journal Entry to QuickBooks.
  • Look at the bottom of the window, and click on the desired posting basis from the Basis to the post drop-down menu.
  • Now, as usual, post your journal entry.

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 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.

A minimal Account Setup is that in which the minimum number of accounts is used. An 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.

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 issues after using these steps you can contact our support team or can contact our QuickBooks ProAdvisor and solve all the issues.

Frequently Asked Questions (FAQs)

What are the benefits of FAM QuickBooks?

Here are some of the advantages of FAM QuickBooks given below:

  • You can get an accurate calculation of the depreciation of your business assets.
  • You can easily maintain a track record of assets.
  • Intimation of proper journal entries can be easier with FAM QuickBooks.
  • You can generate and record various depreciation forms and reports more efficiently.
  • FAM maintains the profit/loss records efficiently.
  • You can keep track of the information about the assets that you hold.

What is the required information to set up QuickBooks FAM?

To set up QuickBooks FAM (Fixed Asset Manager), the information required is:

  • Name of the company
  • Address of the company
  • Account chart
  • Contact details of the company
  • Income tax form
  • Federal tax details
  • Details of business assets and their value.

How to install the new QuickBooks while using FAM?

Follow the given steps to install the new QuickBooks while using FAM:

  • First, install the new QuickBooks for the desktop.
  • Then, open the fixed data manager in the new QuickBooks.
  • Select transfer client and follow the instructions shown on the screen.

What is the role of each of the programs in entering and tracking assets?

QuickBooks FAM

  • It is possible to enter asset information.
  • It is possible to compute depreciation.
  • It is possible to start a journal entry.
  • Depreciation forms and reports can be prepared by a variety of methods.

QuickBooks Desktop

  • It is possible to enter asset information.
  • Based on your requirements, you can create custom reports.

How does information flow between QuickBooks and FAM?

From QuickBooks Desktop to FAM

  • Company name
  • Company address
  • Company contact
  • Income tax form
  • Federal tax ID
  • Chart of account
  • Brief info of asset

From FAM to QuickBooks Desktop

  • Asset number
  • Brief info of asset
  • FAM assets that have been added
  • Accumulated appreciation after the year
  • End-of-year book value.
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