In QuickBooks Online, you can track the current value and depreciation of your assets. Vehicles, equipment, machinery, buildings, and other assets used for business start with a certain value and gradually lose it over time. This decrease in value is known as depreciation.
Calculating asset depreciation is difficult. Your accountant knows the best methods. I recommend consulting with them to regularly review how you track depreciation. If you're not already working with an accountant, you can find one in your area here: Find an accountant.
The first step will be to record the vehicle purchase as an asset. You'll enter the current value (what you paid for it), and track the depreciation.
First, set up an asset account:
1. Go to Settings ⚙ and select Chart of Accounts.
2. Select New.
3. From the Account Type ▼ dropdown, select Fixed Assets.
4. From the Detail Type ▼ dropdown, select the option that most closely describes the asset.
5. Name the account.
6. Check the Track depreciation of this asset box.
7. Enter the current value of your asset in the Original cost field and the as of date. If recording the loan, leave this blank.
8. When you're done, select Save and Close.
Next, with the help of your accountant, track the depreciation by using the method explained in this article: Depreciate assets in QuickBooks Online.
I hope this helps get you back on track.
If you have any other questions about this process, please don't hesitate to reach out to our tech support team for further assistance.
Have a nice day.
Hello ginotpetrocco1. I'm happy to hear from you again. Rest assured, I'll be happy to help you achieve your QuikBooks goals today. To make sure we're both on the same page, could you elaborate more on what you're trying to accomplish on your end?
Hey there Monali,
Thanks for reaching out to us here. Making sure you're recording your transactions properly is an essential step for maintaining clean books. I can provide some information about recording transactions in QuickBooks Online.
I can provide this helpful guide to provide a better understanding of setting up an asset account. However, to ensure accuracy in your books I recommend reaching out to an accounting professional for expert advice on creating these types of transactions. They'll be able to guide you in choosing the correct transaction type as well as which accounts to affect so that your accounts can end up with the right balance. You can add your accountant to your books by going to the My Accountant tab of your QuickBooks account. You can also find an accountant that has experience using QuickBooks near you by clicking on the Find a pro to help option in that section.
If you have any other questions, feel free to reach out here.