A business uses many assets that last more than one reporting period. These types of property and equipment are bought with the intention of using them for several years. In order to spread out expenses over a long period of time, businesses will elect to depreciate the value of the asset over time. In Quickbooks, it only takes a few easy steps to enter the depreciation values for any long-term asset.
In the "Lists" menu, select "Chart of Accounts" to begin tacking a depreciation amount onto a company's asset.
Select the asset that is to be depreciated. You will see the original value of the asset, the accumulated depreciation so far, and the remaining value of the asset.
Enter the depreciation amount to be debited from the value of the asset. The depreciation amount should be calculated using the same method as previous depreciation expenses. This amount may have been entered when the asset was originally added to Quickbooks.
Enter the depreciation amount to be credited to the depreciation expense account. Save the transaction to complete the change of the asset's value.
Tips & Warnings
When calculating the current depreciation expense, continue using straight-line depreciation, sum-of-the-years depreciation, the double-declining balance method, or usage-based depreciation, but do not switch methods from what has been used previously. Changing the method used may warrant investigation into your company's financial statements.
In the "Lists" menu, select "Chart of Accounts" to begin tacking a depreciation amount onto a company's asset.
Select the asset that is to be depreciated. You will see the original value of the asset, the accumulated depreciation so far, and the remaining value of the asset.
Enter the depreciation amount to be debited from the value of the asset. The depreciation amount should be calculated using the same method as previous depreciation expenses. This amount may have been entered when the asset was originally added to Quickbooks.
Enter the depreciation amount to be credited to the depreciation expense account. Save the transaction to complete the change of the asset's value.
Tips & Warnings
When calculating the current depreciation expense, continue using straight-line depreciation, sum-of-the-years depreciation, the double-declining balance method, or usage-based depreciation, but do not switch methods from what has been used previously. Changing the method used may warrant investigation into your company's financial statements.