{"id":2852,"date":"2016-02-22T09:00:04","date_gmt":"2016-02-22T17:00:04","guid":{"rendered":"http:\/\/evergreensmallbusiness.com\/?p=2852"},"modified":"2019-07-01T15:37:48","modified_gmt":"2019-07-01T22:37:48","slug":"quickbooks-fixed-asset-items","status":"publish","type":"post","link":"https:\/\/evergreensmallbusiness.com\/quickbooks-fixed-asset-items\/","title":{"rendered":"QuickBooks Fixed Asset Items: A Quick Tutorial"},"content":{"rendered":"

\"Tutorial<\/a>Maintaining a QuickBooks fixed asset item list does a lot to keep your asset accounts organized. A list, a good accurate list, of fixed asset items documents the \u201cnitty gritty details\u201d of which assets you own, for example.<\/p>\n

What\u2019s more, if you get nicely organized in the way you track these items, you can group fixed asset items under broad account names so your balance sheet is clean and easy to read. For example, if you\u2019ve purchased (say) twenty pieces of furniture, you don\u2019t want twenty different line items on your balance sheet\u2014you want one line item labeled \u201cfurniture.\u201d<\/p>\n

One more point about fixed asset item lists: Good, accurate rich details on your fixed asset items also track a lot of useful information you\u2019ll need to calculate tax depreciation properly. Note that your tax accountant will actually do a lot of this work for you\u2014and that\u2019s the way you probably want to roll. But you don\u2019t lose by having good details inside your QuickBooks file. You win in all sorts of little ways\u2014such as by not losing track of items you\u2019ve purchased and such as by seeing items you\u2019ve discarded and so need to write off.<\/p>\n

How to Track a Fixed Asset Item in QuickBooks<\/h2>\n

Your first step when recording a fixed asset should be to record the fixed asset item in QuickBooks. To do this, go to L<\/u>ists \u2192 F<\/u>ixed Asset Item List. QuickBooks displays the Fixed Asset Item List window (see Figure 1).<\/p>\n

Next, in the bottom left corner, click the \u201cI<\/u>tem\u201d button, then click \u201cN<\/u>ew.\u201d This will open the New Fixed Asset Item dialog box which you can use to enter information about the asset you\u2019ve acquired. Be sure to provide the name of the asset, which account the asset belongs to, and all of the information requested in the \u201cPurchase Information\u201d section.<\/p>\n

Note that most of the information requested in the \u201cAsset Information\u201d section might be helpful to track, but isn\u2019t necessary to enter (at least as far as your tax accountant is concerned). The one exception might be location if your business operates in multiple states.<\/p>\n

Once you\u2019re done entering information about your fixed asset item, click the blue \u201cOK\u201d button in the upper-right corner.<\/p>\n

\"the<\/a>
Figure 1<\/figcaption><\/figure>\n

Creating a Fixed Asset Account<\/h2>\n

You might have to create a new asset account for the fixed asset item.<\/p>\n

You can add accounts to QuickBooks in a variety of ways, but to do this while you\u2019re describing the fixed asset item, first select the field labelled \u201cAsset Account.\u201d Next, scroll to the top of the list of accounts and click \u201c<Add New>.\u201d QuickBooks displays the Add New Account dialog box (see Figure 2). Enter a name for the account (for example, if you\u2019re creating an account to track all of your office furniture, you might call this account \u201cOffice Furniture\u201d). Then click the blue \u201cSa<\/u>ve & Close\u201d button.<\/p>\n

\"the<\/a>
Figure 2<\/figcaption><\/figure>\n

Dealing with Depreciation<\/h3>\n

One other thing to note: If you\u2019re creating an asset account for a depreciable asset, you\u2019ll actually want to create two subaccounts for your fixed asset accounts: one to track the original cost of your purchases, and one to track accumulated depreciation. (I might name these subaccounts \u201cOriginal Cost\u201d and \u201cAccumulated Depreciation\u201d.)<\/p>\n

Creating subaccounts works the same way as any other account, except once you reach the Add New Account dialog box, you\u2019ll want to check the box \u201cSubaccount of\u201d and select the appropriate account from the drop-down menu (see Figure 3 and Figure 4)<\/p>\n

\"The<\/a>
Figure 3<\/figcaption><\/figure>\n
\"The<\/a>
Figure 4<\/figcaption><\/figure>\n

How to Record a Fixed Asset Purchase in QuickBooks<\/h2>\n

After you\u2019ve created fixed asset items for your assets in QuickBooks, you\u2019ll want to make sure you actually record the purchase in your books. Probably the easiest way to do this is through the Write Checks window. So start by going to B<\/u>anking \u2192 W<\/u>rite Checks.<\/p>\n

Next, select the \u201cItem<\/u>s\u201d tab (about halfway through the screen). Select an empty field under the column labelled \u201cItem\u201d and click the drop-down arrow. Now scroll through your item list to find the fixed asset items we created during step one, above. Once you select the fixed asset item(s) you created for this purchase, QuickBooks will automatically enter the purchase amount into the check. Note that you can select more than one fixed asset item for the same purchase. See Figure 5 for an example.<\/p>\n

All you have to do next is enter a vendor and a memo like you would for any other check you write, and then click \u201cSave & Close\u201d (or \u201cSave & New\u201d if you have multiple checks to write, of course).<\/p>\n

\"fixed<\/a>
Figure 5<\/figcaption><\/figure>\n

After you\u2019ve recorded the purchase, the fixed assets will show up on your balance sheet as of the purchase date (see Figure 6). (In the example below, the Accumulated Depreciation account doesn\u2019t appear because we haven\u2019t recorded any transactions to that account yet.)<\/p>\n

\"balance<\/a>
Figure\u00a06<\/figcaption><\/figure>\n

 <\/p>\n

\n

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Which is all a financial tragedy. Getting smarter about tax deductions can save business owners a bundle.<\/p>\n

If you\u2019re thinking after reading this that maybe you can do a better job with your tax deductions, consider our $40 monograph Small Businesses Tax Deduction Secrets<\/em>.<\/p>\n

This 70-page monograph provides detailed instructions\u00a0about how you can\u00a0annually save thousands of dollars in income and related taxes simply by more effectively using legitimate small-business tax deductions. Interested in more detailed information? Click here.<\/a><\/p>\n

Tip:<\/strong> If you are a client of our CPA firm, don\u2019t purchase this monograph\u2014or any of our other monographs. Just email us and ask for your complimentary copy.<\/p>\n

Immediately\u00a0Downloadable & Money-Back Guarantee<\/h2>\n

The book is instantly downloadable. You get the monograph when you purchase it.<\/p>\n

Also, we provide a money-back guarantee. If you don\u2019t find the information you need or want, no problem. Just email us<\/a> and request your refund.<\/p>\n

P.S. Interested in more article like this? You can subscribe to the email newsletter version of the blog post by clicking the green follow button that appears below.<\/p>\n","protected":false},"excerpt":{"rendered":"

Maintaining a QuickBooks fixed asset item list does a lot to keep your asset accounts organized. A list, a good accurate list, of fixed asset items documents the \u201cnitty gritty details\u201d of which assets you own, for example. What\u2019s more, if you get nicely organized in the way you track these items, you can group […]<\/p>\n","protected":false},"author":3,"featured_media":3121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[8],"tags":[],"class_list":{"0":"post-2852","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bookkeeping","8":"entry"},"yoast_head":"\nQuickBooks Fixed Asset Items: A Quick Tutorial<\/title>\n<meta name=\"description\" content=\"Need a quick tutorial on QuickBooks Fixed Asset items? 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