Tracking Depreciation in QuickBooks 2017

QuickBooks 2017: Tracking Depreciation

QuickBooks is a valuable tool that can help its users in very many ways. It is the finest solution to maintain one’s financial dealings online. All forms of financial information which includes capital assets, profits, borrowings, etc. are categorically recorded in QuickBooks.

Possessing assets for future profit is common but it is of utmost importance to review those assets for depreciation. If calculating accrued depreciation is racking your brain let QuickBooks aid you effectively in this regard. QuickBooks 2017 allows individuals to create different accounts for charting the depreciation of an asset with respect to its original price.

The purchased assets that have been entered in the Chart of Accounts can be tracked for depreciation by the client by using the appropriate features of Quickbooks 2017. In order to review the asset for depreciation, a client needs to make and maintain two different accounts, which are as follows:

• Accumulated Depreciation Account: This account is responsible for maintaining the record of fixed assets. This account can be created in the following manner:
  • Choose Chart of Accounts by selecting the Gear icon
  • From the top right-hand side corner select New.
  • In the category tab, Fixed Asset or OtherAsset can be selected as per the requirement.
  • Provide a relevant description of the asset from the list that appears. After that select
  • Provide a name for the account.
  • When the question: “ Do you want to track the depreciation of this asset?” appears on the screen, press Yes which will enable QuickBooks to mechanically generate a Depreciation
  • Next, the initial costs are to be filled in appropriate fields.
  • The Finish button is to be selected to complete the procedure.
• Depreciation Expense Account: This account is meant to track expenditure. It can be easily created by following a few simple steps which are enlisted below:
  • Select the Gear icon and choose Chart of Accounts.
  • Select New from the top right-hand corner.
  • Specify the category of expenditure provided under the Other expense tab
  • Give details as required under the Depreciation
  • Provide an apt name for the depreciation which is to be tracked and then select

The depreciation can be calculated through manual journal entries from time to time. This can be done by the below-mentioned steps:

• Select the Plus (+)sign on the upper part of the screen and choose Journal Entry.
• While beginning your entry, the first line is used to mention the depreciation expense account in the Account tab and the sum total of the calculated deduction is to be enlisted in the Debit
• The Accountant in the next line is for the entering the decrease in value of the asset and the Credit is for entering the sum of asset depreciation
• After completing the entry in an aforesaid manner you can Save it for future reference.

Summary:

Recording depreciation is quite easy with QuickBooks. Even then, if due to any technical malfunction you are unable to complete the task you can and are always welcome to take the help of the supportive and friendly professional experts of QuickBooks.