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simonshah
Level 1

Record a computer purchase fixed asset

Please can someone give me step by step instructions on how to record the purchase of a computer for business purposes in QBO? How do I create the asset account. How do I record the bank payment to the vendor. Does all the amount I pay get recorded as an expense becuase I want to depreciate the asset over 4 years. Thanks
Solved
Best answer April 15, 2022

Accepted Solutions
Rea_M
Moderator

Record a computer purchase fixed asset

Recording a fixed asset in QuickBooks Online (QBO) is easy, and I'm here to show you how, @simonshah.

 

You'll first have to create an asset account to track the current value and depreciation of your computer or the things that your company owns (i.e., land, vehicles, buildings, and machinery and equipment). Here's how:

 

  1. Go to the Accounting menu.
  2. Select Chart of Accounts.
  3. Click New.
  4. From the Account Type dropdown, select Tangible Assets.
  5. From the Detail Type dropdown, choose Machinery and equipment.
  6. Name the account.
  7. Select the Track depreciation of this asset checkbox.
  8. Enter the current value of your asset in the Original cost field and the as of date. If recording the loan, leave this blank.
  9. When you're done, select Save and Close.

 

Once you're done, you can record your computer's depreciation. QBO doesn't automatically depreciate fixed assets. You need to manually track it using journal entries instead.

 

With that being said, I'd recommend working with your accountant who knows the best methods for recording the depreciation of your assets. They'll also guide you with the appropriate account to use in managing your bank payment to the vendor.

 

For your complete guide in recording the depreciation of your purchased computer, please see this article: Depreciate assets in QuickBooks Online.

 

Also, to further guide you in managing your assets and the growth of your business using QBO, I'd recommend checking out one of our Help pages: QuickBooks Support. It includes topics about account management, banking, and expenses, to name a few. Click the + More topics button to view other selections.

 

Let me know in the comments if you have other concerns about fixed assets and recording depreciation in QBO. I'm always ready to help. Take care, and I wish you continued success, @simonshah.

View solution in original post

5 REPLIES 5
Rea_M
Moderator

Record a computer purchase fixed asset

Recording a fixed asset in QuickBooks Online (QBO) is easy, and I'm here to show you how, @simonshah.

 

You'll first have to create an asset account to track the current value and depreciation of your computer or the things that your company owns (i.e., land, vehicles, buildings, and machinery and equipment). Here's how:

 

  1. Go to the Accounting menu.
  2. Select Chart of Accounts.
  3. Click New.
  4. From the Account Type dropdown, select Tangible Assets.
  5. From the Detail Type dropdown, choose Machinery and equipment.
  6. Name the account.
  7. Select the Track depreciation of this asset checkbox.
  8. Enter the current value of your asset in the Original cost field and the as of date. If recording the loan, leave this blank.
  9. When you're done, select Save and Close.

 

Once you're done, you can record your computer's depreciation. QBO doesn't automatically depreciate fixed assets. You need to manually track it using journal entries instead.

 

With that being said, I'd recommend working with your accountant who knows the best methods for recording the depreciation of your assets. They'll also guide you with the appropriate account to use in managing your bank payment to the vendor.

 

For your complete guide in recording the depreciation of your purchased computer, please see this article: Depreciate assets in QuickBooks Online.

 

Also, to further guide you in managing your assets and the growth of your business using QBO, I'd recommend checking out one of our Help pages: QuickBooks Support. It includes topics about account management, banking, and expenses, to name a few. Click the + More topics button to view other selections.

 

Let me know in the comments if you have other concerns about fixed assets and recording depreciation in QBO. I'm always ready to help. Take care, and I wish you continued success, @simonshah.

Fiat Lux - ASIA
Level 15

Record a computer purchase fixed asset

@simonshah 

As another option, consider having a 3rd party depreciation app to integrate with your QBO. It records your fixed assets when you purchase them and records journal entries automatically in your QBO referring to your settings. It costs GBP 15 peer month per QBO account.

 

NT_2.jpgNT_1.jpg

KatL
Level 3

Record a computer purchase fixed asset

I have realised that you can only find the tick box when you create a new Tangible Asset it doesn't apply to an existing empty one which seems a bit odd when you've never used it.  It means yo uhave to create a new one and get rid of the old one standard one that QB created when we set the company up.

 

AreYouKiddingMe2
Level 1

Record a computer purchase fixed asset

This is not longer an accurate description in QBO as of 5/17/2024... screen shots, the approach to achieve X since the software UI has changed. 

JaeAnnC
QuickBooks Team

Record a computer purchase fixed asset

I appreciate you for joining this thread. I'll outline the steps below to help you record a fixed asset in QuickBooks Online (QBO) with the new user interface.

 

Yes, you're right. We regularly upgrade the program's interface to streamline workflows and ensure the platform is more intuitive and efficient for users. 

 

To record a fixed asset, you need to create an asset account to track its value and depreciation. Here are the updated steps:

 

  1. Go to the Gear icon and select Chart of Accounts.
  2. Click New.
  3. Enter the Account name, Account type, and Detail type.
  4. Provide other necessary information, then Save.
    image (5).png

I recommend reaching out to your accountant for the specific account type to use.

 

Moreover, I'll share this article to gain insights into your company's financial aspects: Run reports in QuickBooks Online.

 

Feel free to comment below if you have other concerns regarding the new user interface. We're here to listen and address your queries. Take care and have a good one.

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