Managing fixed assets

In Chapter 15, Closing the Books in QuickBooks Online, we explained what a fixed asset is and showed you how to add new and existing fixed assets to the chart of accounts. To recap, a fixed asset can be a vehicle that you use for your business, office furniture such as desks and chairs, or a computer. In general, the purchase amount for these items may be larger than your day-to-day business expenses. Fixed assets are subject to depreciation, which is the reduction of the value of a fixed asset due to wear and tear. Depreciation is a tax-deductible expense so this is one of the reasons why you want to be sure to account for it on your books.

One of the newest features available to QBO Advanced subscribers is the ability to generate a depreciation schedule in QBO for all of your fixed assets. QBO will automatically record depreciation for your assets on a monthly basis. If you would like to add multiple fixed assets at the same time, you can use the fixed...