A fixed asset is a tangible asset owned by a company's Balance Sheet that is not for resale and is used in the business. Some typical examples include Buildings, furniture, fixtures, equipment, leasehold improvements, and cars. Depreciation adjustments are recorded to deduct the cost of these assets during their useful life. In this article, you will get a in-depth information about how to use Fixed Asset Manager in QuickBooks Desktop. Thus, keep reading ahead!
How to Set up Fixed Asset Manager (FAM) in QuickBooks?
- It determines the asset depreciation.
- You can input asset information.
- It notifies the journal entries
- It produces reports and depreciation forms.
How can I set up the Fixed Asset Manager in QuickBooks?
To set up a fixed asset manager in QuickBooks Desktop, you need to follow these steps:
Step 1: Setting up income tax form
To set up the income tax form, follow the walkthrough mentioned below (for both New Users and Existing Users).
For a new user
As a new user, you must create a new company file in the account.
- When you open the 'QuickBooks' account, the 'no window' is open.
- You must create a new company file before the details start.
- In the open easy step interview, click on 'how the company is organized.'
- Go to the 'Finish' button to move on to the next stage when you're done.
For an existing user
In this, you already have the company data file, so you have to do the following steps:-
- In QuickBooks Desktop, select the Company menu option.
- Then, from the additional options, select My Company.
- Select report information.
- Finally, select the utilized income tax form and click the OK button.
Step 2: Set up General Ledger account in QB account
- The Fixed Asset Manager must add depreciation to the depreciation (expense) account. Hence the General Ledger account is required.
- It also provides an entry for the total of accumulated depreciation and asset value, which is put together.
- Asset tracking is simple, so you may use the minimal account or the ideal account to get started.
- This is where the setup for each fixed asset's account is done.
- As a result, you must have the correct General Ledger account.