Tracking Fixed Assests in QuickBooks made Easier

Posted by on Jul 21, 2011 in Other Accounts | 2 comments

I recall working for a company that had eight computers, a number of printers and a server. Besides that, they also had various software, office furniture and equipment, machinery and equipment related to their type of industry, and a small fleet of trucks.

As you can image, there was a lot to keep track of. Now one way of tracking all this would have been through an Excel spreadsheet, but the more effective way was through QuickBooks Fixed Asset Item list.

Using this sample data, I am going to show you how to utilize this feature by setting up the Trailer that was used in the previous article on the Liability accounts.

To start this, I would go to the Menu Bar/Lists/Fixed Asset Item List/ right click on my mouse and then choose New.

This will bring up the New Item window as shown on the right, where I will enter in the following information.

As you will notice the Type field has already defaulted to Fixed Asset, which you can not change. In the Asset Name/Number goes Trailer and if you had more than one, if might be Trailer 1 or Trailer Quesnel.

In the Purchase Information section I will tag New and once again enter Trailer as the Purchase Description. The Date field is the date that the trailer was purchased, which was 12/31/2008.

In the Cost field goes 30,000.00 and in the Vendor/Payee field, who the trailer was purchased from – East Vancouver Auto Mall.

Starting in the Asset Information section, and specifically the Asset Description field, I will key in White trailer with company logo. My philosophy would be, the more information, the better.

Location field – Quesnel,  PO Number – WRC 698842, Serial Number – QP12233468Z ( this is ultra important), Warranty Expires – 12/31/2013 (also important)

Finishing up with the Notes field I have entered – Trailer is used to house the camp foreman and is furnished with appliances.

Remember, all this information will help track this fixed asset and will benefit anyone reading it also. Who knows, in the five years before the warranty expires, there may be two or three bookkeepers or accounting people that will work with this asset.

The other key component - this information will help set up the capital cost allowance figure for the amorization/depreciation expense.

To complete this task I will click on OK to save it and close the Fixed Asset List, unless I want to add more items.

Use this feature - trust me, it will save you a pile of headaches and confusion.

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2 Responses to “Tracking Fixed Assests in QuickBooks made Easier”

  1. I noticed that when the financing for the Trailer was previously recorded, the Cost amount in Fixed Asset Cost field. How is it possible to do this? For example, when entering the financing and attributing it to the trailer, I’d like the amount to be entered into the fixed asset item’s cost.

    • Larry Johnson says:

      Just create an account called Cost, which is a sub-account of Trailer. Enter in the amount in the Cost account minus the sales tax.
      So the entry would be: Debit the Trailer/Cost account and Credit the Loan account.

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