Intermediate
How to track fixed assets on QuickBooks
Quick Answer
Track fixed assets in QuickBooks by enabling the Fixed Asset Manager feature, creating fixed asset items, and recording purchases through journal entries or bills. QuickBooks will automatically calculate depreciation and maintain asset records for tax reporting.
Prerequisites
- QuickBooks subscription with fixed asset management features
- Administrative access to your QuickBooks account
- List of fixed assets to track
- Asset purchase dates and values
1
Enable Fixed Asset Manager
Navigate to Settings > Account and Settings > Advanced tab. Scroll to the Other preferences section and toggle on Track fixed assets. Click Save to activate the feature.
Tip
This feature may require a QuickBooks Plus or Advanced subscription
2
Set Up Fixed Asset Accounts
Go to Settings > Chart of Accounts and click New. Select Fixed Assets as the account type and create specific accounts like Equipment, Vehicles, or Furniture. Also create corresponding Accumulated Depreciation accounts for each asset category.
Tip
Use separate accounts for different asset types to maintain better organization
3
Create Fixed Asset Items
Navigate to Settings > Products and Services > New > Non-inventory. Enter the asset name, select the appropriate fixed asset account from the dropdown, and add relevant details like asset description and purchase information.
4
Record Asset Purchases
Create a Bill or Journal Entry to record the asset purchase. For bills, go to Expenses > New > Bill, select your vendor, and add the fixed asset item. For journal entries, debit the fixed asset account and credit cash or accounts payable.
Tip
Use bills when purchasing from vendors, journal entries for cash purchases or transfers
5
Set Up Depreciation
Access the Fixed Asset Manager from the main dashboard or through Reports > All Reports > Fixed Asset Manager. Click on your asset and select Edit Asset Details. Enter the Asset Life, Depreciation Method (straight-line, MACRS, etc.), and Salvage Value.
Tip
Consult with your accountant to determine the appropriate depreciation method and asset life
6
Track Asset Locations and Details
In the Fixed Asset Manager, click on each asset to add additional tracking information such as Serial Numbers, Location, Department, and Employee Assigned. Use the Custom Fields option to track specific details relevant to your business.
Tip
Regular updates to asset locations help with physical inventory counts
7
Generate Depreciation Entries
In Fixed Asset Manager, click Depreciate Assets and select the depreciation period. Review the calculated depreciation amounts and click Record Depreciation to create journal entries. These entries will automatically debit depreciation expense and credit accumulated depreciation accounts.
Tip
Set up recurring monthly or annual depreciation entries to maintain accurate books
8
Monitor Asset Reports
Access fixed asset reports through Reports > Business Overview > Fixed Asset Listing or Fixed Asset Manager. Review reports like Asset Valuation Summary, Depreciation Schedule, and Asset Listing Detail to track asset values and depreciation.
Tip
Export these reports for tax preparation and insurance documentation
Troubleshooting
Fixed Asset Manager is not available in my QuickBooks version
The Fixed Asset Manager feature requires QuickBooks Plus or Advanced subscription. Upgrade your subscription or manually track assets using fixed asset accounts and journal entries.
Depreciation calculations appear incorrect
Verify the Asset Life, Purchase Date, and Depreciation Method in the asset details. Check if the Salvage Value is correctly entered and ensure you're using the appropriate tax depreciation method for your jurisdiction.
Unable to find created fixed assets in reports
Ensure assets are properly categorized under Fixed Asset account types in your Chart of Accounts. Check that the asset purchase transactions were recorded correctly and refresh your reports by clicking the Refresh button.
Depreciation entries are creating duplicate transactions
Check the Fixed Asset Manager for previously recorded depreciation entries before creating new ones. Use the Undo feature if duplicate entries were created, or manually delete duplicate journal entries from the Accounting > Journal Entries section.
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