Managing your Fixed Assets
Do you Manage you Fixed Assets for your Business?
Much of the work you do in QuickBooks is short-term. You send an invoice and it gets paid. Your purchase order is fulfilled, and the products move into your inventory. You run payrolls and submit their related taxes and other payments.
Managing the life cycle of your fixed assets is an exception. Simply, fixed assets are physical entities that you purchase to help your business generate revenue, like property, a vehicle or a commercial oven. By definition, they must be in use for over 12 months.
QuickBooks can help you track these, for both the value of your company and your tax obligations. The process involves life of the asset and a sale price, should you eventually sell the assets affects the depreciation.
Managing your company’s fixed assets is a complicated process, one that may require some extra assistance. You may need our help in depreciating the book value of your fixed assets, for your company’s asset management and as well as for your tax obligation.
When to START Tracking:
The best time to start taking care of your fixed asset is right at the beginning of creating the transaction. At the time you Enter Bills, Write Checks, Enter Credit Card Charges you may want to create the items before you move to the Fixed Asset Manager module. To do this, click on the Lists menu and select Fixed Asset Item List and populate the field.
Please make a note that, your fixed asset records are critical elements of your QuickBooks company file as it help you create a comprehensive accounting system for your business.
It is possible that you may find the process to be a bit more involved. If this will be the case, please let us know. We will be glad to assist you in configuring the asset management and depreciation for your QuickBooks company file. Remember that it takes us a lot less time & money to take preventive steps than to troubleshoot a broken one.
Ben Derebie, MBA, CMA, Advanced Certified QuickBooks & Enterprise Solutions ProAdvisor
www.acctbusol.com
