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Frequent Explorer *

Recording fixed asset in the middle of its life

Hi,

 

A company purchased a fixed asset before it set up its accounting with Quickbooks, So for example, the fixed asset was bought in 1/1/2015 and in 2019 the company started using Quickbooks. Say this asset is depreciated using straight line method. Asset's cost was $10,000 with no salvage value and 10 yrs life. In 2019, how do this company record the fixed asset into the QB?

The QB used is QB Premier - Nonprofit 

Thank you. 

2 Comments
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Established Community Backer ***

Re: Recording fixed asset in the middle of its life

When you start to use QB for an existing organization, usually you do NOT try to recreate the entire history of all entries - instead you 'transfer' the current balances from the old accounting system into QB as of a specified cut-off date. Its critical to make a clean cut&switch between system so nothing is either missed or duplicated.

So whatever happened in the deep past isnt relevant to setting up a new QB - just what the asset book value is right now.

Frequent Explorer *

Re: Recording fixed asset in the middle of its life

I see. How do I record the asset book value into QB?

and when I create the accumulated depreciation, do I record the balance to date (record the opening balance?) in QB?

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