Here is the article where we are going to show you “How to Setup and Record Depreciate Assets in QuickBooks Online”. In QuickBooks Online, once you set up your assets, you can start recording their depreciation specifying depreciated values. QuickBooks Online will not offer you an automated facility to depreciate fixed assets. Rather than, you are required to manually track depreciation with the help of journal entries.
If you are willing to get complete details about this topic then read the article till the end. But if you are in trouble, then the right service we have for you is to connect our Intuit Certified ProAdvisors to get your problems instantly resolved through the 24*7 help desk technical support number +1-844-770-0699.
Note: A proper calculation for your assets is very typical but your accountant will definitely know the best methods to make it easier for you and also know which methods make sense for your issue. We highly advised working with them regularly to completely review how you track depreciation. You are also required to review the article from the IRS.
Steps to Setup and Record Depreciate assets in QuickBooks Online
To successfully record the Depreciate Assets in QuickBooks Online, Firstly you have to set up the depreciate account and then go for recording the depreciation. As we mentioned above maintaining and recording the Depreciate assets in QuickBooks Online is not an easy job, but to perform this easily, it is essential to follow the steps which we offer to you listed below:
Step 1: Set up a depreciation account
If you don’t have any depreciation account in QuickBooks Account for tracking the depreciation then you have to go through some easy and simple steps for creating a depreciation account, you will get it here. These steps are:
- First of all, You have to open “QuickBooks” and go for their “Settings ⚙”, then choose “Charts of Accounts”.
- After that, simply choose “New”
- Now choose “Other Expense”, you will go to the option from the “Account Type ▼” dropdown menu.
- Then choose “Depreciation”, you will get this option from the “Detail Type ▼” dropdown
- Manually provide a name to the account as an example: “[Asset] depreciation]”
- Once all the above steps have successfully completed, click on the “Save and Close” option to end it.
Step 2: Record the depreciation
Once you have completed step 1, you will get accounts to track your assets and their depreciation. At the end of the accounting year, you have to talk to your accountant and maintain the journal entries just to check out and record the lost values(depreciated amount). Follow the steps to calculate the depreciated amount, these are:
- In the first step, You have to choose the “+ New” option. Then pick “Journal Entry”.
- From the “Account dropdown ▼”, you can choose the asset account on the first line which you required to track the loan.
- After that, manually enter the depreciated amount in the “Credits” column.
- Then go for the “Account dropdown ▼” again and choose the “Depreciation account” on the second line you just have created.
- Now manually enter the similar depreciated amount in the “Debits” column.
Note: As we know, when you are talking about journal entries the first thing that comes to mind is “Debit” and “Credit”. In this step, you have to choose the “Debit” column and put the same depreciated amount in it.
- At last, choose the “Save” option to end it.
Steps were taken to Make a Recurring Into a Journal Entry
If you are willing that the process of Depreciate assets will record automatically, then you have to go through some simple steps. The steps that we described here will help you to do the process automatically without performing anything manually. Steps are:
- To start the process, you have to choose the “+ New” option
- Then, pick the “Suitable asset account“ option inside the account column
- After that, the “Information filling page” will be opened on your screen, then you have to enter the appropriate details.
- In the end, simply click on the “Recurring” option, also choose the save templates to automatically track the depreciation.
Important: We are highly advised to focus on your business, not your Books. You will get month-end income statements and balance sheets right to your inbox. For this, you can either contact us through the help desk or through QuickBooks Live Bookkeeping.
In Bottom Line
Thanks for reading our article! You will see multiple methods for Setup and Record Depreciate assets in QuickBooks Online for your Company, but the steps which we provide to you through this article are easy to implement and will definitely work. If you’re probably wondering which method you should use. At that point, you can get help from our experts available at +1-844-770-0699 to determine which method makes sense for presenting all your accounting financial data.