How to manage fixed assets in QuickBooks Online Advanced

[0:00] With QuickBooks Online Advanced, you can use QuickBooks to manage your fixed assets and help you track depreciation and automate your depreciation journal entries. Let's set up a new fixed asset, schedule depreciation for the asset, add multiple assets, and record the purchase of an asset. To start, select All Apps, then Accounting, and then Fixed Assets.

[0:22] You can set up a single fixed asset or multiple at the same time. Let's set up a single asset for now. Select Add an asset. First, name the asset. Use any name that makes sense to you. The description is optional, but you can use it to add any other details. Enter the purchase price.

[0:40] This is the full purchase price before any financing, minus any discounts, and plus any sales taxes, delivery charges, and installation fees. It's important to note that this doesn't record your purchase of the asset. That's recorded later in a separate window. You can also enter the salvage value of the asset. This is the estimated resale value of the asset at the end of its useful life.

[1:03] Then enter the depreciation start date. This is usually the date you started using the fixed asset. Next, choose the depreciation method for the fixed asset. Select the method from the list or reach out to your accountant if you don't know which method you use. Then enter the useful life of the asset in years. If you don't know this, ask your accountant.

[1:24] Then enter the asset and expense accounts you want QuickBooks to use when it records depreciation. If you set up the accounts ahead of time, select them from the drop down menus or select add new to set up new accounts. Your asset and accumulated depreciation accounts must be fixed asset type accounts, and your depreciation expense account must be an Other Expense type account.

[1:48] After you've selected your accounts, select Save. Now you see the depreciation schedule for your asset. Select any of the arrows to expand a section and see more details. It's important to note that QuickBooks doesn't record any historical journal entries.

[2:04] So if you're setting up an asset you've already depreciated, you'll see the asset value, depreciation, and remaining value for each month in the past, but QuickBooks won't record that journal entry for you. QuickBooks will automatically record any depreciation scheduled in the future, though, at the end of each month.

[2:23] If you want to record historical depreciation, you'll need to enter that yourself with journal entries or adjust your existing journal entries to match the schedule QuickBooks generates. Use the Setup tab to change any of the asset's details. Close the window when you're done. If you ever need to look at the schedule again or change some details about the asset, select View.

[2:46] You can also delete assets from this window. If you need to set up multiple assets at the same time, select Add multiple assets. From here, you can enter details about your assets in a spreadsheet format. If you already have details about your assets in a spreadsheet, you can copy and paste them into this window.

[3:05] Select Customize columns to reorder the columns in QuickBooks to match those in your spreadsheet. Copy the information from your spreadsheet, select a cell in QuickBooks, and then paste the info to put it into QuickBooks. Then select Save. Remember that setting up an asset here doesn't put the asset on your books. Select Chart of accounts.

[3:27] It's important to check the balance of the fixed asset account. If it's zero or isn't right, you may need to record the purchase or set up a beginning balance for it with a journal entry if you purchased it in a previous year. You can record that transaction manually, or if it was recent and you use online banking, you can record it after you download it from your bank.

[3:50] Make sure to use the same asset account you used earlier when you set up the fixed asset. Now you're ready to set up your fixed assets in QuickBooks Online.