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October 27, 2021
Question

How can I record an asset what I bought from my personal cash before my business is start? Can I record the depreciation for this asset?

  • October 27, 2021
  • 1 reply
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1 reply

October 27, 2021

Hi Volford,

 

I'd be glad to help you record the purchases in QuickBooks Online.

 

First, we'll have to create a new credit card account. This will be used to gather all the purchases using the owner's personal funds. Here's how:

  1. From the Accounting tab, select Chart of Accounts.
  2. Click the New button.
  3. Select Credit Card as the Account Type, and Detail Type.
  4. Give it a Name.
  5. Click Save and Close.

 

Next, we'll have to create an expense transaction to enter the details of the purchases. Let's make sure to select the credit card account we created.

 

After you set up your assets, you can record their depreciation.QuickBooks Online doesn't automatically depreciate fixed assets. Instead, you need to manually track depreciation using journal entries.

 

If you haven’t already, create an account to track depreciation.

  1. Go to Settings ⚙ and select Chart of Accounts.
  2. Select New.
  3. From the Account Type ▼ dropdown, select Other Expense.
  4. Select the Detail Type ▼ dropdown, select Depreciation.
  5. Give the account a name, like "[Asset] depreciation]"
  6. Choose Save and Close.

 

For more information, you can check out this article: Depreciate assets in QuickBooks Online

 

Lastly, you can refer to this article to help you get your way around tracking and categorizing your business-related transactions: Enter and manage expenses in QuickBooks Online

 

Feel free to get back to us if you have other questions about your expenses. I'm always here to help. Have a wonderful day!