How to Setup an Asset Account in QuickBooks Online

Want to set up an asset account in QuickBooks Online? Before you go for it, you must be aware of some key facts related to the Asset account in QuickBooks Online as the essential guidelines and rules. So this article is to provide you with the information needed to set up the asset account, here we have arranged all the information in order. Go through the full article and set up an asset account in QuickBooks Online. Still, if you have any problems, contact our QuickBooks ProAdvisor to consult you. Toll-Free+1-844-405-0904

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Do you know? You can create an asset account in QuickBooks Online if you wanna track the current value and depreciation of your assets or the things that own your company. It includes the following which we listed below:

  • Land
  • Vehicles
  • Buildings
  • Machinery and equipment

Once the assets go depreciated, the current value can be loose. Time by time the assets gradually lose their value. When the value of any assets decreases it is known as Depreciation.

Point to Remember: If it is required to calculate your asset’s depreciation, we highly advised you to work with your accountant who has the best methods to help you. In several cases, only the accountant will help you. You can also go checking out the Chart of Accounts just to get a high understanding of what each account is for and what it does.

Steps to Set up an Asset Account in QuickBooks Online

Here you will know the steps you have taken to set up an Asset Account in QuickBooks Online. All the steps are tested and verified by our experts just to save your time and effort. Steps are:

  • First of all, Open “QuickBooks” and go to their “Settings ⚙”, then choose “Chart of Accounts”.
  • Then choose “New”.
  • Now you have to go for Fixed Assets or “Other Assets”.You will get it from the Account Type ▼ dropdown menu.
  • Then choose the option that closely describes the asset. You will get this option from the Detail Type ▼ dropdown menu.
  • Name the account, then choose the “Track depreciation of this asset” checkbox.
  • In the “Original cost” field, you have to manually enter the current value of your asset and the “as of” date. It’s optional that you can either leave this blank if you record the loan.
  • Once the process will proceed successfully and you’re done, choose “Save and Close”.

Final Note

Here are the article ends, We hope the information you will get through this article based on “Setup an Asset Account in QuickBooks Online” was very helpful for you. But in case, you face obstacles while implementing the solutions, then contact our professionals available at QuickBooks Support.

We will make sure that you can get rapid help and effective solutions for any of the problems you will face while working on QuickBooks Online. Get in touch with us at any time and from any location that is convenient for you.

Frequently Asked Questions (FAQs)

How to change an asset account in QuickBooks?

To categorize your income, QuickBooks provides various types of asset accounts.QuickBooks offers you to change your one type of asset account into another type of asset account. To change your account, go to the chart of accounts list and open the account by double-clicking on it. Then, check the box to make it inactive. Now, follow the given steps to change your asset account:

  • Go to the lists menu and select the chart of accounts.
  • Choose an account from the list by clicking on the account name.
  • Click on the account button & then select edit account.
  • Click on the type and select the account type from the given list.
  • Now, to save the changes to your account, click on Save & Close.

What are fixed assets in QuickBooks Online?

A fixed asset means a physical tangible asset that can’t be converted into cash. It is used to generate income in business operations as a part of the permanent resource of a company. The costs of these assets are recorded on a balance sheet rather than an expense on an income statement. Fixed assets are recorded as property, plant, and equipment (PP&E). Some examples of fixed assets are real estate, office equipment, computers, software, machinery, etc. 

What are the benefits of recording fixed assets in QuickBooks Online?

You can monitor and track depreciation & mileage, equipment’s location & serial numbers, and more via recording fixed assets in QuickBooks Online.

A fixed asset is a very important part of your finance and managing expenses to track them.

What are the different types of fixed assets that can be manually added in QuickBooks?

  • Buildings
  • Land
  • Furniture
  • Office equipment
  • Tools and machinery, etc.
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