QuickBooks Online Advanced has a fixed assets module!  No more waiting for year-end journal entries or having Excel documents and recurring journal entries!

You can now manage your individual assets in QuickBooks Online and have the depreciation or amortization entered automatically.  Check out this video to walk through the steps:

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After navigating to the fixed assetssection of QuickBooks Online from the navigation bar on the left, you can addan asset.

Here, you enter all of the information, including the method of depreciation, useful life, and salvage value.

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QuickBooks Online then calculates and posts all of the upcoming depreciation entries. Note that if you are adding an asset that is already in use, you will have to manually add any amortization prior to making the entry.  QuickBooks will not backdate any transactions.

This feature alone may make QuickBooksOnline Advanced worth the higher subscription cost!

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^{Download a free Small Business Month-End Checklist to help ensure your books are accurate and up to date!}

Cheers!

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Advanced Fixed Assets

Kerry: [00:00:00] Hi, Kerry here from My Cloud Bookkeeping. I work with small businesses and entrepreneurs to help them manage their business finances in QuickBooks Online. If you're not sure if you're using the best plan for your business, check out my plan comparison below. Be sure to watch right to the end for useful tips for your business.

Another great feature in QuickBooks Online Advanced is the ability to properly manage your fixed assets. No more waiting until year end for your tax accountant to give you journal entries or setting up recurring transactions to try to manage depreciation. It can be all set up within your QuickBooks file to automatically calculate.

So let's take a look. Now I came to this fixed assets page from the advanced accounting. On the left hand side, this is not a sample company. So I didn't want to kind of walk you into here because there's real data behind here, but we're going to set up a couple of assets within this file. Hopefully nothing's going to go wrong, [00:01:00] but we'll just see what happens.

So first of all, we're going to go into just add one asset and our asset name is going to be a. F 150 truck. How's that? Uh, now we might have the VIN. I don't know. It's going to be that, except it's probably in capitals and has some letters and the purchase price. We're going to buy this for, I don't even know what these trucks cost, but I'm going to say it was 45, 000 and we bought it yep, we'll buy it today. Now the depreciation method is either a straight line or a declining balance. So a straight line is basically we're going to be getting this forty five thousand dollars and dividing it equally across maybe we'll go for 45 months and amortizing or depreciating an equal amount each month.

The declining balance is a little more complicated. It's a percentage of the reducing balance every month. Now, if none [00:02:00] of that made sense to you, don't worry too much about it. Somebody will know what you should be doing. So this is how you enter how long you expect to be using this track for

what is the useful life of track to you and your business. So I'm going to say that it's four years, and then I'm going to say we can sell it after that for 5, 000, we're going to choose an asset account, and I'm just going to have to do a quick pause here to fill this in, because this actually is a live file, so just bear with me for a moment.

Okay. So you can see that I have allocated the original cost, this 45, 000 to the asset. We're going to amortize it in an accumulated depreciation account and I have an expense account for amortization, so I'm going to hit save. And what we have now is the schedule. So the, the asset value, For 2022, it was 45, 000 when we bought it.

We're going to depreciate it for the rest of [00:03:00] this year. And then here we go. We've got almost, I tried to get it correct, almost 10, 000 every year until in 2028, we're going to have the amortization or the depreciation for a few months and then sell it for 5, 000. This will go through automatically every month.

Now, when it comes time to dispose of your asset, you're going to click this here, dispose. The disposal date has to be after the purchase date. Ah, four years from now, where are we, 20, Oh, it's 2028. So let's just sell it right when we expect it to. Yup. There we go. And selling price 5, 000 and there was no selling fee.

Oh, I guess it's not going to let us go that far into the future. Is it? I wonder what'll happen. Yeah, I guess not. Maybe we just have to sell it today. Yeah, we have to sell it today. So now let's have a look at the summary. So we lost 40, 000 selling it for 5, 000 today, but you [00:04:00] haven't got any amortization.

Uh, what I was hoping to show you there was that it would recapture any amortization that we had sold. So I hope this isn't all too accounting. If it is, I apologize. Uh, so no future depreciation entries will be posted. This is the most important thing here is that once you've disposed of it, it's going to stop putting in those depreciation entries that we could see here on the schedule there.

There's our summary. So once we sell it, this will all stop. I hope that makes sense. So now we're going to look at the option to add multiple assets. Wow. This is great. So we can just put the asset name, if there's a class, the purchase price, purchase date, when we want the depreciation to start. All of those things that we just answered a minute ago, and we can pop them all in here.

We can also import, which is brilliant because a lot of us will have already had [00:05:00] assets in our books and to be able to import them in to get a proper fixed asset schedule will be amazing. As always, if you're importing into QuickBooks, I suggest downloading the file that they give you use that and upload it.

It'll reduce the number of errors that you have. And of course we need at any point in time to be able to have a look at our fixed assets register. So because I've only added the one it's sitting here, we can see what its remaining value is. It's depreciating. If we'd added more imported them, they would all be showing up here.

This is part of what makes the QuickBooks advanced plan a higher level than the other ones. The ability to do. Okay. some of these more advanced tasks. Hopefully most of that made sense. The ability to manage depreciation and fixed assets, and of course dispose of them is a great feature. Once again, only available in the advanced plan.

When you're reviewing your numbers regularly, be sure to check off all the items in my month end [00:06:00] checklist. If you don't have it, you can download it below. Your financial statements will be more accurate with the fixed assets properly recorded and the depreciation or amortization reflected regularly.

I'd love to hear how you get on with this new feature or if you have any questions, make a note in the comments below. Cheers!

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