You can record the depreciation only after setting up assets in QuickBooks Online. Because QuickBooks Online does not depreciate fixed assets automatically. In that scenario, you have to manually record the depreciation with the help of journal entries. Although calculating the asset depreciation is quite complex. But your accountant always knows the best methods to easily track the QuickBooks depreciation of the fixed asset. However to track the depreciation automatically on a daily/weekly or monthly basis. For this, you have to set the Depreciation Journal Entry to recurring in QuickBooks. By doing this, you can automatically record the depreciation automatically. Since recurring transactions are quick methods to make different transactions with the same details. That will occur only on a regular basis. Also, you can track the depreciation manually with the help of a recurring template. This blog will tell you how to track the QuickBooks depreciation manually.
Steps to track the QuickBooks depreciation of the fixed assets:
As you know that manually tracking QuickBooks depreciation of the fixed assets is not an easy job. But by following some steps you can easily track the depreciation of the fixed assets. First of all, you have set up a depreciation account. And then only you can record the depreciation. Steps are as follows:
Step 1: Firstly, you have to set up a depreciation account
If you have not made a depreciation account, then firstly you have to create an account. Which helps you in tracking the depreciation. To create a depreciation account, you have to follow some steps such as:
- First, click on Settings and then choose the Chart of Accounts.
- Then click on the New option to create the depreciation account.
- Now, from the Account Type, click on Other Expense.
- After that from the Detail Type, choose Depreciation.
- Next, give that account a name.
- Click on Save and Close the window.
Step 2: And track the depreciation
When you have your depreciation accounts to track your assets and their depreciation. Then at the end of the year after consulting with your accountant. You have to create a journal entry to record the lost value. You have to follow some steps such as:
- Firstly, you have to hit the Add New option(+ New).
- Select the Journal entry after clicking on the new option.
- Choose the asset account which you normally use to track the loan from the Account dropdown.
- Next, enter the depreciated amount in the Credits column.
- Select the Depreciation account you have just created from the Account dropdown.
- Enter the same depreciated amount in the Debits column.
- When this is over, click on Save to save the depreciation.
Steps to make a recurring into a journal entry
If you want to track the QuickBooks depreciation automatically. Then you have to implement some steps. They are as follows:
- Firstly, you have to hit the Plus(+) icon.
- Under the Account column, you have to select a suitable asset account.
- Fill the required information carefully.
- Next, click Make recurring, and then click on Save template to track depreciation automatically.
In the end
In brief, we can say that tracking QuickBooks Depreciation manually is a tedious job. However, you can do it manually by following some useful steps. In that case, you have to create a depreciation account if you have not created it before. After creating the depreciation account, you can easily track the depreciation without any difficulty. And, also you can track it automatically with the help of a recurring template. I hope this article will be helpful to you.