Question

Fixed Assets Balance

Forum|Forum|5 years ago
February 10, 2021
3 replies
20 views

Why does my balance on a fixed asset go up when I make a payment on the asset? Should it be going down?

QuickBooks Desktop

R

ReyJohn_D

Moderator

I can share a few insights about fixed assets in QuickBooks Desktop (QBDT), @Bella1123.

Your fixed asset account balance will go up or increase when you make a payment against it. In this case, you'll own the products you purchase and hence counted as part of your asset.

If you sold your assets, it will decrease your fixed asset account balance. As always, I'd recommend consulting your account to further check this since every business has a unique set up. Don't have an accountant? We'll help you look for one through our Find-an-Accountant tool.

Also, you'll want to use our Fixed Asset Manager (FAM) tool to begin tracking your assets in QBDT. In case you run into some errors, you can refer to this article for the fixes: Resolve errors in FAM.

I'm a post away if you need more QuickBooks tips or have questions about handling your transactions. I'm here to take care of them for you.

D

denise2310

How do you know how much to depreciate when its a vehicle purchase? does all fixed assets have to have a deprecation account? I set up the fixed asset and have my payments from my operating bank account drop into the fixed account but the balance is increasing not decreasing.

MaryLandT

Level 10

I can share how you can calculate the depreciation amount, denise2310.

Determining the amount of depreciation to deduct can be a complex process, and the IRS rules on the subject change often.

In QuickBooks, all depreciation assets are fixed assets. But, not all fixed assets are depreciable. For an asset to be depreciated, it must lose its value over time.

Your accountant knows the best methods. I recommend working with them to regularly review how you track depreciation. You should also review this article from the IRS.

In addition to this, the Fixed Asset Manager (FAM) is a feature available in QuickBooks Desktop that computes depreciation of fixed assets based on the standards published by the IRS.

Since QuickBooks Desktop and QuickBooks Fixed Asset Manager have different data files, it's important on how to set up Fixed Asset Manager (FAM) to ensure that your fixed asset financial information is properly handled.

I've also added these articles to help you manage and move your fixed asset data to your new device:

Don't hesitate to get back in here if you have other concerns. I'll be glad to assist you. Have a pleasant day.

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