Hello,
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.
