Our nonprofit has reached the point where we are purchasing fixed asset equipment and this video was very helpful in knowing how to properly record the transactions. Thank you!
Great breakdown. Understanding fixed assets is crucial for accurate financial reporting. Also, have you explored using depreciation schedules for better asset management? This video is a solid foundation.
Well done! Thank you. It's so helpful when you are also competent in Excel and use it as additional tool. I love Excel! Question 1: I am not sure what changes QBO made, but can you not create a sub account of depreciation (manually) under each asset, just like the old way? Question 2: Not related to this. If I received a direct deposit $1000 to the business checking account, but this money is for the owner and need to be withdrawn as cash $1000. How would you compose the Journal Entries? I wonder how you would categorize the initial deposit? Thank you!
You're welcome! What may be best is in QBO just creating (if not already created) one a single Fixed Asset account called “Computers” or “Office Equipment”, whatever you’d like, and put all the laptop purchases in there. Then, create a separate spreadsheet outside of QBO, something like Excel or Google Sheets in order to track your Fixed Assets on an individual level, recording things such as purchase date, purchase amount, depreciation method, deprecation taken, net value, etc
For this, I would talk to a tax person to verify if and how you can take depreciation on that asset and then adjust your bookkeeping from there. Usually, putting a vehicle on a business balance sheet is if the vehicle is used 100% for business. If mixed, this is usually handled during tax returns by splitting up expenses rather than depreciation on the Balance Sheet. Again though it’s worth more tax implication research for your exact situation. Thanks for watching!
Thank you Gunnar. How do you record assets that were purchased BEFORE ? Meaning, they are an asset that the business uses, and is making payments on each month, but the original purchase isn't on the books because it happened so long ago?
No that should be just fine! I like creating the fixed asset first in the chart of accounts, but doing it in the expense screens has the same end result. Just make sure it's a Fixed Asset and not set as a current asset
Can’t say without more info, but generally credit cash or loan and debit any physical fixed assets and/or goodwill (purchase price - physical fixed assets) while also accounting for any outstanding liabilities from debt taken on during the acquisition.
Thanks for the video. It's very informative. But I think gain on the sale of asset needs to record as a credit. Dr. Cash 800, Dr. Accumulated Depreciation 1000; Cr. Gain on sales 600 Cr. Asset 1200
You are correct if it is indeed a gain, but in this example I'm showing sold at a loss, also accumulated deprecation wouldn't be touched on the entry for a fixed asset sale entry
Thanks for this! My QBO still allows me to create depreciation accounts for each asset - weird! My question is regarding entering assets purchased in prior years. Would the credit portion of the journal entry to get these assets on the books go to retained earnings?
Our nonprofit has reached the point where we are purchasing fixed asset equipment and this video was very helpful in knowing how to properly record the transactions. Thank you!
Awesome, thank you!
Detailed and extremely helpful - Thank you!
Thanks for this feedback and comment!
I appreciate your calm detailed demeanor. Great demo ! Thank you!
Thank you so much! This was great.
Great breakdown. Understanding fixed assets is crucial for accurate financial reporting. Also, have you explored using depreciation schedules for better asset management? This video is a solid foundation.
Well done! Thank you. It's so helpful when you are also competent in Excel and use it as additional tool. I love Excel!
Question 1: I am not sure what changes QBO made, but can you not create a sub account of depreciation (manually) under each asset, just like the old way?
Question 2: Not related to this. If I received a direct deposit $1000 to the business checking account, but this money is for the owner and need to be withdrawn as cash $1000. How would you compose the Journal Entries? I wonder how you would categorize the initial deposit? Thank you!
Hello, Thanks for the Demo. What do I do when if I purchased more than one item? For example, 5 macbooks
You're welcome! What may be best is in QBO just creating (if not already created) one a single Fixed Asset account called “Computers” or “Office Equipment”, whatever you’d like, and put all the laptop purchases in there. Then, create a separate spreadsheet outside of QBO, something like Excel or Google Sheets in order to track your Fixed Assets on an individual level, recording things such as purchase date, purchase amount, depreciation method, deprecation taken, net value, etc
How would you log a vehicle if you share it with your business? If you use it for both personal and business. Thanks!!
For this, I would talk to a tax person to verify if and how you can take depreciation on that asset and then adjust your bookkeeping from there. Usually, putting a vehicle on a business balance sheet is if the vehicle is used 100% for business. If mixed, this is usually handled during tax returns by splitting up expenses rather than depreciation on the Balance Sheet. Again though it’s worth more tax implication research for your exact situation. Thanks for watching!
Thank you Gunnar. How do you record assets that were purchased BEFORE ? Meaning, they are an asset that the business uses, and is making payments on each month, but the original purchase isn't on the books because it happened so long ago?
Is the liability for the loan recorded on the books yet? How have the monthly payments been being recorded?
HI ,Will I have any issues if I add an asset to an 'Asset account' in expense window.?
No that should be just fine! I like creating the fixed asset first in the chart of accounts, but doing it in the expense screens has the same end result. Just make sure it's a Fixed Asset and not set as a current asset
How does on record purchase of a business?
Can’t say without more info, but generally credit cash or loan and debit any physical fixed assets and/or goodwill (purchase price - physical fixed assets) while also accounting for any outstanding liabilities from debt taken on during the acquisition.
Thanks for the video. It's very informative. But I think gain on the sale of asset needs to record as a credit. Dr. Cash 800, Dr. Accumulated Depreciation 1000; Cr. Gain on sales 600 Cr. Asset 1200
You are correct if it is indeed a gain, but in this example I'm showing sold at a loss, also accumulated deprecation wouldn't be touched on the entry for a fixed asset sale entry
Thanks for this! My QBO still allows me to create depreciation accounts for each asset - weird! My question is regarding entering assets purchased in prior years. Would the credit portion of the journal entry to get these assets on the books go to retained earnings?
Just now getting to this, hopefully we covered this well enough in our training session!