How To Use the QuickBooks Online Fixed Asset Manager

After you click the Add an asset button, a form will appear on the right side of your window (see image below for a sample). Fill out all the required fields, such as those with asterisks, to complete the setup.

Click through the tabs below for details of the form.

Fixed Asset Details

• Asset name: Input the name of the asset. Keep it short, unique, and identifiable to other fixed assets.
• • In the example below, the name of the asset is, “Lenovo ThinkPad T16 Gen 2.” If you use other Lenovo ThinkPads of a different model, it will be easy to distinguish the T16 Gen 2 model from the other models.
  • If you have multiple units of the same asset, e.g., 20 units of the T16 Gen 2 model, you must add multiple entries in QuickBooks Online. Our recommendation is to add a unique identifier, such as the name of the person who will use the asset. Given our example below, the asset name could be, “Lenovo ThinkPad T16 Gen 2 – Max Bright.”
• Description: Add relevant information about the fixed asset. Feel free to attach links that will redirect to a file showing more details about the fixed asset or simply add a short description. At the minimum, we recommend adding the following:
• • Serial number
  • Date issued
  • Purpose
  • Responsible employee

Depreciation Details

• Purchase price is the amount on the sales invoice when you purchased the asset.
• Purchase date is the date on the sales invoice.
• Depreciation start date is the date when the asset was put in service.
• Depreciation method is the method the asset is depreciated. In QuickBooks Online, you can choose among straight line depreciation, double-declining balance, and 150% declining balance.
• Useful life is the estimated number of years that the asset will be put in service. Our guide on how to determine asset useful life can help you in this matter.
• Salvage value is the estimated value of the asset at the end of its useful life. If you’re unsure, set it to zero.

Account Details

• Asset account: This is where all fixed assets will be aggregated. The Fixed Asset Manager will serve as a repository for all fixed asset information, but all of it will be summarized into one account in the general ledger.
• Accumulated depreciation: This is what will hold all depreciation from previous years. You may add multiple accumulated depreciation accounts with unique identifiers like, “Accumulated Depreciation – Office Equipment” or “Accumulated Depreciation – Buildings.”
• Depreciation expense: This is what will report depreciation expense on the income statement. We recommend using a single depreciation expense account for all depreciation entries unless there’s a need to create separate expense accounts.

If this is your first time adding fixed assets into QuickBooks, you may add them as a batch. The image below shows a table where you’ll add all fixed asset information. Alternatively, you may also import a comma-separated values file for convenience.

Here are the steps for adding multiple assets:

• Step 1: In the Non-depreciable asset column, tick the check box if the asset is a nondepreciation, such as land. Otherwise, leave it blank.
• Step 2: Ensure to fill out the columns with asterisks. Those without asterisks can be left blank. Here are the required columns for quick reference:
• 1. Asset name
  2. Purchase price
  3. Purchase date
  4. Depreciation start date
  5. Depreciation method
  6. Useful life
  7. Accumulated depreciation amount
  8. Asset account
  9. Depreciation expense account
  10. Accumulated depreciation account
• Step 3: Click the Save button at the bottom right corner of the screen.

QuickBooks doesn’t record entries automatically in the Fixed Asset Manager to their parent accounts in the chart of accounts. Unfortunately, you have to do this manually.

First, navigate to the left sidebar menu and click Transactions. In the drop-down menu, select Chart of accounts.

Once you’re in the chart of accounts page, navigate to the search bar to search for the parent fixed asset account. Go to the Action column and click View register.

In the register, click Add journal entry and fill out the form that will appear below. Add the cost of the fixed asset in the Increase column. Be sure to indicate how the fixed asset was paid for on the second line of the entry. In the example below, the asset was purchased from the checking account.

Since the Fixed Asset Manager can only show the depreciation per fixed asset. If you want to view the depreciation of all fixed assets, you may do so by clicking See Report above the columns. QuickBooks Online will redirect you to the Reports page and you’ll see this screen:

In the sample image above, we removed some columns to retain only the relevant columns. You can do that by clicking Columns at the top right portion of the report.

By using the report above, you can manually check if all fixed assets have been recorded in the chart of accounts. If not, make the necessary journal entries or transaction entries. The total accumulated depreciation in this fixed asset depreciation detail report should match the accumulated depreciation in the chart of accounts.