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Set up an asset account in QuickBooks Online

SOLVEDby QuickBooks1120Updated 1 month ago

Learn how to set up an asset account to track depreciation over time.

You can create an asset account in QuickBooks Online to track the current value and depreciation of your assets or the things that your company owns, like the following:

  • Land
  • Vehicles
  • Buildings
  • Machinery and equipment

These assets gradually lose value over time. This decrease in value is known as depreciation.

Note: If you need to calculate your asset’s depreciation, we recommend you work with your accountant who knows the best methods. You may also want to check the chart of accounts so you can better understand what each account is for and what it does.

Step 1: Check to see if you already have an asset account

To avoid creating duplicates, make sure you don’t already have an asset account for the asset you want to track.

  1. Go to Settings ⚙ and select Chart of accounts.
  2. Select the Type ▼ header to sort your Chart of accounts by account type.
  3. In the Type column, look for accounts with “Other Current Assets” or “Fixed Assets”.
  4. For these accounts, if the description under the Detail Type column closely describes the asset, then your chart of accounts is already set up. No need to create another asset account.

Step 2: Set up an asset account

  1. Go to Settings ⚙ and select Chart of accounts.
  2. Select New. Depending on your account view, you’ll either see a panel labeled New account or New category. Select the option you see below for next steps.
  1. From the Save account under dropdown, select Fixed Assets or Other Assets.
  2. From the Tax form section ▼ dropdown, select the option that closely describes the asset.
  3. Enter a name in the Account name field.
  4. In Starting date and opening balance, select a starting date and current value of your asset account balance field. If recording the loan, leave this blank.
  5. When you're done, select Save.
  1. Enter a name for the account in the Category name field.
  2. In Select category, select either Expensive items (Assets) or Other accounts.
  3. Select Next.
  4. Select the option that closely resembles the asset, then choose Select.
  5. In Starting date and opening balance, select a starting date and opening balance for the account. The opening balance can be $0.
  6. Select Save.

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