Hey, today in this blog, you are going to know ‘How to record depreciate assets in QuickBooks Online?’. If you think this is will be a grateful knowledge base blog for you then, stay connected with us and read the blog carefully. So that, it will be easy to understand the blog.
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Here we want to tell you that a Fixed Asset is a permanently owned item. It’s an asset of a business that is central to its operation and is not traded. QuickBooks has a way to track and handle all your fixed assets with its Fixed Asset Item List and the Fixed Asset Manager. Let’s go for the steps without wasting any time:
Steps to Record Depreciate Assets in QuickBooks Online
Recording the QuickBooks depreciate assets in QuickBooks Online is not an easy job. But following these given steps you can easily record the depreciate assets in QuickBooks Online. First, you need to set up the depreciate account, and then you can record the depreciation. Here we can provide the steps are given below:-
Step 1: Set Up a Depreciation Account
If you not having a depreciation account then first you need to make an account on it. Here we will give you the process to how to create or set up a depreciation account, the process is given below:-
- First, you need to go to the Settings option and then click on the option of the Chart of Accounts.
- Then, Click on New option.
- After that, go to the Account Type dropdown, and then click on the option of Other Expense.
- Then you need to click on the Depreciation option from the Detail Type dropdown.
- Enter a new name of the account, such as “[Asset] depreciation]”.
- At last, you can click on the option of Save and Close to finish it.
Step 2: Record the Depreciation
Here you are ready to have an account to track your assets and their depreciation. At the end of the year when you or the accountant of your company have calculated the depreciation amount, enter the transaction:
- First, in this step click on + New option.
- Then, click on the option of Journal entry.
- Then go to the Account dropdown option, and then you need to choose the asset account on the first line that you use to track the loan.
- After that, you can enter the depreciated amount in the Credits column.
- Then go to the account dropdown, and then click on the Depreciation account option on the second line, that you just created.
- Enter the same depreciated amount in the Debits column which you can enter in the first line.
- And at the end, you can click on the option of Save.
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Steps to Make a Recurring Into a Journal Entry
Here we will tell you that if you want to record the depreciation automatically, then you have to do some process for it. Here we will provide you with the process, and the process is given below:-
- First, you need to click on the +New option.
- Then, click on the suitable asset account option, comes under the account column.
- Then, the information filling page opens, and you need to enter the required details.
- At the last clicking on the recurring option, and then select the save templates to track the depreciation automatically.
In the above topic, we have discussed that, ‘How to Record Depreciate Assets in QuickBooks Online?’. We hope you like the simple solution. Still if in case, if you need any kind of help to perform it, or want to clear any doubts regarding this blog then, you can get our Accountwizy ProAdvisor support through the toll-free number +1-844-405-0904.