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payoy123
Level 1

fixed asset equipment

Hi there,

 

Please how do I record new Bakery equipments on loan, we bake in a supermarket and were paying the equipment to them forthrightly for 5 years . Thank you for the reply.

2 Comments 2
Rea_M
QuickBooks Team

fixed asset equipment

Hello there, @payoy123.

 

In QuickBooks Online, you can easily record your fixed asset equipment you bought for your bakery with a loan. However, there are things you need to consider when assessing the original value of the purchase such as trade-in, down payment, fees, taxes, and so on. With this, I'd recommend consulting with your accountant on how to account for those variables before performing the steps below.

 

Once ready, you'll first need to set up your asset account. Then, create a liability account to record a loan based on your repayment time frame (5 years). You can choose the Non-current liabilities as its Account Type. Here's how:

  1. Go to the Gear icon.
  2. Select Chart of accounts.
  3. Click New.
  4. Choose Non-current liabilities for Account Type.
  5. Select a detail type (i.e. Loan Payable).
  6. Name the account.
  7. Leave the Unpaid Balance blank, then select Save and Close.

 

I've attached a screenshot below that shows the last four steps.

 

After that, you can record the loan. As mentioned above, this process can get tricky. You need to consult your account before performing the said process to keep your books accurate. 

 

When you're ready to pay back the loan, you can refer to this article's Step 3: Record a loan repayment section for the step-by-step guide: Set up a loan in QuickBooks Online.

 

Additionally, after every payment you make, you can pull up the Transaction Detail by Account report. This is to monitor expense transactions and make sure they're accurate. Just go to the For my accountant section from the Reports menu's Standard tab.

 

Please know that you're always welcome to comment below if you have other concerns or follow-up inquiries about recording assets and loans in QBO. I'm just around to help. Take care always.

payoy123
Level 1

fixed asset equipment

Thank you very much for this, appreciate it. will do your advise talk to my accountant. You will hear more from me I guess for questions. :) cheers