How to record intangible assets in the QuickBooks online

Welcome to the QuickBooks Community, Khurram1010. Let me help you record intangible assets in QuickBooks Online to ensure your entries stay accurate.

When your business spends money on an intangible asset such as a patent or trademark, you'll first have to set up accounts in QuickBooks. Then, create a fixed asset, accumulated amortization, and amortization expense accounts for intangibles. Beforehand, I suggest consulting an accountant before performing the process below. They can provide suggestions on how to properly handle accounts for any intangible transactions, especially with the categories to use for the debit and credit.

Here's how to create each account:

1. Go to Settings ⚙ and select Chart of accounts.
2. Click the New button. 
3. Choose a particular category name and enter a description.
4. Fill in the other necessary field and click Save.

Once done, you can create an Intangible Asset transaction like recording a check and expenses in QuickBooks to process amortization.

Then, I recommend creating a journal entry to handle the amortization of the intangible asset. You normally have an expense account set up to track amortization, along with a sub-account attached to your intangibles asset account for the tracking of the accumulated amortization. Please follow the steps below.

1. Click the + New button and choose Journal Entry.
2. Enter the Journal date to the date you want to reflect the amortization.
3. On the first line under Account, select the amortization expense account you created. Type the amount of the amortization in the Debit column.
4. Select the accumulated amortization account you created. Type the same amount in the Credit column.
5. From the Name dropdown menu, select a customer.
6. Fill in the other needed fields.
7. Select Save and close.

Lastly, you may refer to this article to view details on how various accounts on the Chart of accounts page track your transactions or categorize your entries on everything from sales forms to reports to tax forms: Learn about the chart of accounts in QuickBooks Online.

Feel free to mention my name in your reply if there's anything else that you need further assistance with intangible assets. I'm just around the corner to help, Khurram1010. Have a nice day!

what if you have purchased intangible assets with personal funds?

Good day, @TJ8319.

Thanks for joining the thread. Since you're paying intangible assets with personal funds, use an owner's equity account and create a journal entry to record them in QuickBooks. 

First, follow the steps outlined by my colleague ChristieAnn to create an intangible asset account. Then, follow these steps to record the business expense you paid for with personal funds. Here's how:

1. Click + New.
2. Select Journal Entry.
3. On the first line, choose the intangible asset account for the purchase.
4. Enter the purchase amount in the Debits column.
5. On the second line, select Partner's equity or Owner's equity.
6. Enter the same purchase amount in the Credits column.
7. Click Save and close.

In case you want to reimburse the money, proceed to step 2 of this article: Decide how you want to reimburse the money that was paid using personal funds.

You can also check out this video for other related resources when entering personal expenses in QuickBooks. 

If you have additional questions, feel free to leave a message in the comment section. I'll be happier to help. Take care and have a great day!