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Join nowI purchased a piece of equipment from a vendor. I set up a bill to record the purchase of the fixed asset. The bill wasn't paid till the next year. I'm working on my 2019 taxes and when I print out a cash basis balance sheet the asset doesn't show up. In previous years when I used QuickBooks desktop the asset would show up on the balance sheet (cash basis). I understand the difference between cash and accrual but now the balance on the tax return won't match the balance per my books. Can anyone explain why QuickBooks online doesn't treat the fixed asset the same way as QuickBooks desktop?
I'm not sure what the issue is, but one thing is that your concept is wrong.
Your buying a fixed asset, that means you have a fixed asset account and a liability account. The downpayment, if any, posts to the fixed asset account and then a journal entry, debit the fixed asset and credit the liability account for the amount of the loan.
then you pay down the liability account.
Monthly payments are composed of two parts, the principal payment and the interest payment. The interest payment portion of the monthly payment is an expense and does not increase the cost of the item being purchased.
The above is true cash or accrual based.
I do understand the concept. When we finance equipment I will book the asset the way you described.
This piece of asset was purchased from a vendor we rent equipment from. We had 30 days to pay the vendor for the equipment. So I set up a bill so we would pay it with our end of month bills. It actually took us 45 days to pay it off so it rolled over to 2020. We've done this in the past when we used the desktop version. When I selected a cash report any payables posted to fixed assets would still remain and the cost of fixed asset would show in the fixed asset account. However it seems that the online version doesn't treat it the same way. I was wondering if anyone knew how to get to the show as the desktop version does.
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