Pinterest

How to Set up Depreciation on Fixed Assets in QuickBooks

QuickBooks is a very helpful accounting software which helps its users in a myriad of ways. It is one of […]

Voiced by Amazon Polly

QuickBooks is a very helpful accounting software which helps its users in a myriad of ways. It is one of the robust solution to efficiently maintain the business deals online. All forms of financial information which encircles the capital assets, profits, borrowings, and the list goes on are absolutely recorded in QuickBooks.

Save Time, Reduce Errors, and Improve Accuracy

Dancing Numbers helps small businesses, entrepreneurs, and CPAs to do smart transferring of data to and from QuickBooks Desktop. Utilize import, export, and delete services of Dancing Numbers software.

Quick Introduction to Depreciation in Simple Words:

Depreciation is referred as an accounting procedure of assigning the expenses of tangible assets. An exact amount of assets share reclassifies to an expense account. Its expenses do not impact the cash.

Depreciation Facts:

Here are a few facts given below about the Depreciation:

  • Useful Life: It refers as the number of years for which a business will use the asset.
  • Salvage Value: Dollar amount the business can sell the asset towards the end of its useful life.
  • Depreciable Base: The holistic expense that devalue the asset’s helpful life. In such scenario, you are required to evaluate the depreciable base by subtracting the expense of the assets by its rescue esteem. The equation is given below:
  • Cost of the asset minus rescue esteem is equals to the depreciable base
  • Depreciation Schedule: The plan properly records the dollar measure of Depreciation every year depending upon the elements recorded and the Depreciation technique.

There area swathe of depreciation strategies mentioned below:

  • Straight-line
  • Units of production
  • The sum of the years’ digits
  • Double-Declining balance
  • Modified accelerate sit recover system

Elucidating the Fixed Asset in QuickBooks Accounting Software

A fixed asset (also called a long-lived, non-current, or stock asset) in QuickBooks refers to a physical asset that is physically present and cannot be quickly converted into cash. It is a relatively permanent asset of a business used in business operations to generate revenue, unlike parts of inventory for resale. The cost of these assets are recognized in the financial statements rather than as an expense in the income statement because they are expected to be used over multiple periods. Fixed Assets would be displayed as PPandE, which stands for Fixed Assets. They are also subject to wear and tear (excluding real estate), which reduces their value over a period of time. This process is referred as damping. For this reason, companies periodically transfer part of the cost capitalized in the financial statements as an expense to the income statement.

Recording purchases as fixed assets can be bountiful for organizations with more than one reporting period. A few known examples of fixed assets are:

  • Real Estate
  • Software
  • Machines
  • Vehicles Computers
  • Office Machines

Asset tracking lets you track depreciation and mileage (for vehicles), equipment location and serial numbers, warranty information, and other essential data.

Fixed assets are a crucial, yet often overlooked, part of tracking your finances, managing expenses, and filing taxes efficiently by the end of the reporting period.

Here are a few assets type given below which can be added manually in the QuickBooks accounting software:

  • Buildings: Facilities owned by a company;
  • Furniture & Fixtures: Desk, tables, cabinets, cubicle walls;
  • Improvements: This includes the amount which owner has spent to maintain the company property;
  • Land: cost of purchasing the land. In addition, it is considered expenditure on improving the land;
  • Long-term Office Equipment: This includes the equipment’s which life of more than one year; for examples, Tools, machinery, and equipment: equipment for work outside the office which has a useful life of more than one year.

Creating Fixed Asset Account: Process Explained

To create a fixed asset account in QuickBooks accounting software you are required to adhere to the below-mentioned steps:

  • Firstly, Navigate to the Settings, and after that hit on the Chart of Accounts and select New.
  • In the Account Type dropdown▼, you need to pick the Fixed Assets or Other Assets.
  • Now, you are required to, Click the option that best suits your Asset from the Detail Type dropdown▼.
  • Input the Account’s Name, then check mark the Track Depreciation of this asset checkbox.
  • Now at this step, you are required to Enter the Starting Value of the Asset in the Original Cost field and the as of date. You also need to Leave this Blank if Recording the Loan.
  • Now in the final step, you need to click Save and Close once the above steps are done.

Set up the Depreciation on Fixed Assets in QuickBooks

Yes, there are two steps to setup the depreciation on fixed assets in QuickBooks. In step one, you are required to set up a depreciation account and after that you are required to make the record the depreciation. For setting up the depreciation account you are required to adhere the below-mentioned steps:

Step 1: Confirm if You Already have a Depreciation Account

Kindly ensure that you do not have the depreciation accounting to avoid creating duplicates.

  • Firstly, you are required to Navigate to the Settings and choose the Chart of Accounts.
  • After that, Enter the Depreciation in the Filter by Name field.
  • Now, you can skip to Step 3 if in the name Column you see an Account with Depreciation, Other Expense in the Type column, and Depreciation in the Detail Type column, then the Chart of Accounts is Set up Already.

Step 2: Set up a Depreciation Account

You are required to create an account to track depreciation if you have not already created it.

  • In the first step, Navigate to Settings and choose Chart of Accounts and after that choose the option New.
  • Now, select the other Expense in the Account Type ▼ dropdown.
  • After that, choose the Depreciation from the Detail Type ▼ dropdown.
  • Now at this point you are required to give the Account a Name, like “[Asset] depreciation”
  • And in the last step, once the above-mentioned steps are done you are required to click on Save and Close.

Step 3: Record the Depreciation

Here you are required to make the record of the assets and their depreciation. At the end of the year post you have done talking to the accountant, you are now required to make a journal entry to record the lost value.

  • In the first step, Select + New and after that choose the Journal entry.
  • Secondly, you are required to select the Assets Account on the first line, which you use to Track the Loan from the Account dropdown▼. And after that, Enter the Depreciated Amount in the Credits column.
  • Now, after that Choose the Depreciation Account you have just Created on the Second line from the Account dropdown▼ and now, Enter the Same Depreciated Amount in the Debits column.
  • Once the above steps are Done choose the Save option.

In conclusion, tracking depreciation is quite easy with QuickBooks Accounting Software 2017. However, if because of any technical reason you are feeling troubled to complete the task, you can and are always welcome to take the assistance of the supportive and friendly professional experts of QuickBooks.

Hopefully, the above given information in this article is sufficient to know about the Depreciation in QuickBooks which is very beneficial for the business. If you need to know more and have any doubt in your mind then do not worry about it because Dancing Numbers experts team who is available 24*7 for the assistance via LIVE CHAT.

Accounting Professionals, CPA, Enterprises, Owners
Accounting Professionals

Looking for a professional expert to get the right assistance for your problems? Here, we have a team of professional and experienced team members to fix your technical, functional, data transfer, installation, update, upgrade, or data migrations errors. We are here at Dancing Numbers available to assist you with all your queries. To fix these queries you can get in touch with us via a toll-free number
+1-347-428-6831 or chat with experts.


Frequently Asked Questions (Faqs)

What Steps needs to be Followed to Record the Fixed Asset Depreciation in QuickBooks?

To record the fixed asset depreciation in QuickBooks you are required to adhere the below-mentioned steps:

Firstly, you need to edit or add the depreciation method/Setting.
After that, open the Fixed Asset Manager.
Now, you are required to navigate to the File menu and select the “Client Information”.
In this step, you need to open the Methods tab and select the exact depreciation method for the depreciation basis.
And lastly, hit on the ok button to save the new changes.

What Steps need to be Followed to Track the Depreciation in QuickBooks?

To track the depreciation in QuickBooks you are required to adhere the below-mentioned steps:

Firstly, you are required to enter the Depreciation.
After that, open the List menu and select the “Chart of Accounts”.
Now, you are required to hit on the “Subaccount” that tracks the accumulated depreciation for that specified asset that you are depreciating.
In this step, you are required to hit on the “Use Register” from the available preferences.
Now, you need to enter the required transaction in the register field: you are required to enter the depreciation amount as a decrease value in the register.

In QuickBooks Accounting Software what kind of Account is Depreciation?

In QuickBooks Accounting Software the basic journal entry for depreciation is accessible to debit the depreciation expense account and credit the accumulated depreciation account.

What are the Steps Which need to be Followed to Create a Fixed Asset Account?

QuickBooks Accounting Software will automatically track the current value and depreciation of the asset while creating the account.

You are required to follow the below-mentioned steps:

Firstly, Navigate to the Settings, and after that click Chart of Accounts.
Now, select the New option.
In this step, you are required to pick the fixed assets or other assets from the Account.
Now, hit on the option of asset which suits you best from the Detail Type dropdown
After that, input the account’s name, then check the Track depreciation of this asset checkbox.
Now, you need to enter the starting value of the asset in the Original cost field and the as of date and leave this blank if you are recording the loan.
Now, finally you need to click on save and close option once you are done with the above steps.

What are the Steps Which needs to be Followed to Record a Fixed Asset Purchase in QuickBooks?

To make sure you have recorded the fixed asset item purchase in the books, you need to follow the instructions mentioned below:

Firstly, navigate to Banking and then write Checks.
After that, choose the Items tab.
Now, under the item column you are required to choose an empty field and click the drop-down menu.
In this step, Scroll down the item list and choose the fixed asset item(s) for this purchase.
And finally, QuickBooks will update the purchase amount in the check automatically.

Features of Dancing Numbers for QuickBooks Desktop

Imports

Imports

Exports

Exports

Deletes

Deletes

Customization

Customization

Supported Entities/Lists

Dancing Numbers supports all QuickBooks entities that are mentioned below:-

Customer Transactions

Invoice
Receive Payment
Estimate
Credit Memo/Return Receipt
Sales Receipt
Sales Order
Statement Charge

Vendor Transactions

Bill
Bill Payment
Purchase Order
Item Receipt
Vendor Credit

Banking Transactions

Check
Journal Entry
Deposit
Transfer Funds
Bank Statement
Credit Card Statement
Credit Card Charge
Credit Card Credit

Employee Transaction / List

Time Tracking
Employee Payroll
Wage Items

Others

Inventory Adjustment
Inventory Transfer
Vehicle Mileage

Technical Details

Easy Process

Easy Process

Bulk import, export, and deletion can be performed with simply one-click. A simplified process ensures that you will be able to focus on the core work.

Error Free

Error Free

Worried about losing time with an error prone software? Our error free add-on enables you to focus on your work and boost productivity.

On-time Support

On-time Support

We provide round the clock technical assistance with an assurance of resolving any issues within minimum turnaround time.

Pricing

img

Importer, Exporter & Deleter

*See our Pricing for up to 3 Company Files

$199/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Unlimited Export
  • Unlimited Import
  • Unlimited Delete

img

Accountant Basic

*See our Pricing for up to 10 Company Files.

$499/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer,Exporter,Deleter
  • Unlimited Users
  • Unlimited Records
  • Upto 10 companies

img

Accountant Pro

*See our Pricing for up to 20 Company Files.

$899/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer, Exporter, Deleter
  • Unlimited Users
  • Unlimited Records
  • Up to 20 companies

img

Accountant Premium

*See our Pricing for up to 50 Company Files.

$1999/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer, Exporter, Deleter
  • Unlimited Users
  • Unlimited Records
  • Up to 50 companies

Dancing Numbers: Case Study

Frequently Asked Questions

 
How and What all can I Export in Dancing Numbers?

You need to click "Start" to Export data From QuickBooks Desktop using Dancing Numbers, and In the export process, you need to select the type you want to export, like lists, transactions, etc. After that, apply the filters, select the fields, and then do the export.

You can export a Chart of Accounts, Customers, Items, and all the available transactions from QuickBooks Desktop.


How can I Import in Dancing Numbers?

To use the service, you have to open both the software QuickBooks and Dancing Numbers on your system. To import the data, you have to update the Dancing Numbers file and then map the fields and import it.


How can I Delete in Dancing Numbers?

In the Delete process, select the file, lists, or transactions you want to delete, then apply the filters on the file and then click on the Delete option.


How can I import Credit Card charges into QuickBooks Desktop?

First of all, Click the Import (Start) available on the Home Screen. For selecting the file, click on "select your file," Alternatively, you can also click "Browse file" to browse and choose the desired file. You can also click on the "View sample file" to go to the Dancing Numbers sample file. Then, set up the mapping of the file column related to QuickBooks fields. To review your file data on the preview screen, just click on "next," which shows your file data.


Which file types are supported by Dancing Numbers?

XLS, XLXS, etc., are supported file formats by Dancing Numbers.


What is the pricing range of the Dancing Numbers subscription Plan?

Dancing Numbers offers four varieties of plans. The most popular one is the basic plan and the Accountant basic, the Accountant pro, and Accountant Premium.


How can I contact the customer service of Dancing Numbers if any issue arises after purchasing?

We provide you support through different channels (Email/Chat/Phone) for your issues, doubts, and queries. We are always available to resolve your issues related to Sales, Technical Queries/Issues, and ON boarding questions in real-time. You can even get the benefits of anytime availability of Premium support for all your issues.


How can I Import Price Level List into QuickBooks Desktop through Dancing Numbers?

First, click the import button on the Home Screen. Then click "Select your file" from your system. Next, set up the mapping of the file column related to the QuickBooks field. Dancing Numbers template file does this automatically; you just need to download the Dancing Number Template file.

To review your file data on the preview screen, just click on "next," which shows your file data.


What are some of the features of Dancing Numbers to be used for QuickBooks Desktop?

Dancing Numbers is SaaS-based software that is easy to integrate with any QuickBooks account. With the help of this software, you can import, export, as well as erase lists and transactions from the Company files. Also, you can simplify and automate the process using Dancing Numbers which will help in saving time and increasing efficiency and productivity. Just fill in the data in the relevant fields and apply the appropriate features and it’s done.

Furthermore, using Dancing Numbers saves a lot of your time and money which you can otherwise invest in the growth and expansion of your business. It is free from any human errors, works automatically, and has a brilliant user-friendly interface and a lot more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


Is it possible to use the Direct Connect option to sync bank transactions and other such details between Bank of America and QuickBooks?

Yes, absolutely. You can use the Direct Connect Option by enrolling for the Direct Connect service which will allow you access to the small business online banking option at bankofamerica.com. This feature allows you to share bills, payments, information, and much more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


What are the various kinds of accounts you could access in QuickBooks?

QuickBooks allows you to access almost all types of accounts, including but not limited to savings account, checking account, credit card accounts, and money market accounts.

Get Support

Bulk import, export, and deletion can be performed with simply one-click. A simplified process ensures that you will be able to focus on the core work.

Worried about losing time with an error prone software? Our error free add-on enables you to focus on your work and boost productivity.

Book your consultation Book Free Consultation
Close X
Call Now+1-800-596-0806
Dancing Number

We value your privacy and are strongly against any kind of phishing, spam, and malware. We collect your information for our legitimate business purpose only. This information is safe with our in-built security.

X



    Top