QuickBooks software is a well-known accounting software that is used for its numerous financial features and functionalities, which give a boost to the growth of the business. As we know, Fixed assets are the long-term assets owned by a business and used to generate income, such as machinery, equipment, and computers.
Fixed asset management is the process of managing business tasks like tracking, managing, and optimizing a business’s long-term tangible assets through their entire lifecycle from purchase to disposal. Such as machinery, equipment, etc. In this article, we will briefly discuss what a fixed asset manager QuickBooks Online is, its advantages, and its limitations.
What Is a Fixed Asset Manager QuickBooks Online?
The fixed asset manager in QuickBooks Online is a tool. This tool is proficient in managing business tasks like tracking, managing, and depreciating its fixed assets effectively. As you know, the value of the asset decreases over time, which has to be recorded in the financial data. The fixed asset manager computes the value of the fixed assets after deducting the scrap value. QBO fixed asset manager saves employees time by eliminating manual calculations and data entry. This helps employees to work on the crucial tasks of the company.
Fixed asset manager QuickBooks Online provides more benefits to the companies who has a machinery or equipment business, they have to calculate their machinery depreciation over time, and the QBO fixed asset manager makes it easier for them.
Advantages of a Fixed Asset Manager QuickBooks Online
- Tracks Assets: Automatically creates and maintains an asset register and provides accurate tracking of the fixed assets.
- Manages Depreciation: Has various depreciation methods by which it becomes easy to handle data, and provides automated depreciation schedules.
- Saves Time: The automatic asset management process helps employees by calculating assets itself, allowing them to work on the more important tasks of the company.
- Provides Accuracy: QBO fixed asset manager provides the user with accurate depreciation as it calculates depreciation automatically, and for tasks like tax filings and financial accounts, this accuracy is needed.
- Easy Customization: User can customize or alter their reports and asset categories according to the business needs.
- Data security: QuickBooks Online fixed asset manager protects your asset information from unauthorized access.
Limitations of QuickBooks Online Without a Fixed Asset Manager
- QBO has an Insufficiency of an automatic depreciation fixed asset manager that removes this issue.
- There is no built-in asset lifecycle tracking in QuickBooks Online.
- QBO always requires manual spreadsheets because QBO does not provide advanced reporting in certain areas.
- There is no customizable or advanced reporting, which is the reason behind the Limited reporting in the QuickBooks Online report.
How to Set Up a Fixed Asset in QuickBooks Online
- Click the Gear icon to open settings.
- After that, go to the chart of accounts option.
- After clicking on the charts of account, you have to click on the top right corner.
- For account type, choose fixed assets.
- After that, in a detailed manner, you have to choose the category of asset you have.
- After finalizing the category, enter the asset name, for example, Maruti Suzuki 2022 model car.
- After completion, go to the track depreciation of this asset box when you want to track its depreciation value.
- Save your changes, and then you can exit.
Conclusion
QuickBooks Online fixed asset manager is the way to manage and track fixed assets. QuickBooks without Fixed Asset Manager becomes less effective in depreciating asset values, and without a fixed asset manager, it can not provide advanced reporting. With the help of a fixed asset manager, a business can ensure accurate reporting and make better decisions for its assets.