I'm leasing to own a trailer for my contracting business and am not sure how record this in quickbooks online. Can anyone help me set this up?

Hi JBDoes

Recording a "lease-to-own" or capital lease is as follows:

* debit the asset account for the eventual value of the trailer (the total amount over the course of the lease, less any interest payments)

* credit your liabilities for a 'loan'

* each payment you make on your lease acts a debit (reduction) against your loan until the loan value is 0 (when you own the equipment outright) and any interest is recorded as an interest expense

* don't forget to perform depreciation entries against your asset according to the CCA schedule

Hope this helps!

Leith

Hey there jbdoes-inc-gmail,

Making sure you're recording your transactions properly is an essential step for maintaining clean books. To ensure accuracy in your books, I recommend reaching out to an accounting professional for expert advice on creating these types of transactions. They'll be able to guide you in choosing the correct transaction type as well as which accounts to affect so that your accounts can end up with the right balance. You can add your accountant to your books by going to the My Accountant tab of your QuickBooks account. You can also find an accountant that has experience using QuickBooks near you by clicking on the Find a pro to help option in that section.

If you have any other questions, feel free to reach out here.