The accounting world says that buildings, property, furniture, fixtures, machines, equipment and vehicles are all fixed assets that should always be recorded at their original (book value) cost. And while the fair market value of some of these assets may increase over time, the cost basis principle precludes their value from increasing.

In addition, because most of these fixed assets have a limited life expectancy associated with their usefulness, and they eventually become obsolete over time, the accounting principle known as matching mandates that these fixed assets be depreciated.

Depreciation methods vary, and depreciation can be reported significantly differently between book and tax reporting. 

I will pause to mention that property (land) is an exception to the above. Land is neither depreciated or appreciated when a business holds it. But most improvements made on the land will follow standard fixed assets methodology.

While QuickBooks Enterprise has had multiple tools for helping businesses record and track their fixed assets and depreciation, QuickBooks Online has been limited to just using account type assets and creating all the accounts you need to record each asset, their cost, their depreciation, etc.

But now, QuickBooks Online Advanced has simplified the tracking and management of fixed assets.

It even automated the calculation of book depreciation. 

It also provides reports that can reflect individual assets or assets in a specific type (group) or all your fixed assets. 

Another great feature is adding multiple Fixed Assets using a spreadsheet-like entry form. 

These new features streamline the process of recording, tracking, and depreciating your fixed assets. They were designed to eliminate the need for spreadsheets or third party apps to manage your fixed assets. 

For more information about this new QBO Advanced feature, check out this official Intuit YouTube clip.

Footnotes & Disclosures:

As used herein, QuickBooks®, QuickBooks Online Advanced, QuickBooks Online and QuickBooks Enterprise may refer to one or more registered trademarks of Intuit Inc., a publicly-traded corporation headquartered in Mountain View, California.

Some feature content and graphic materials may have been adapted from Intuit content including media (screen) captures from within actual products. All adapted source content and materials are furnished solely for educational purposes by Insightful Accountant.

This is an editorial feature, not sponsored content. No vendor within this article has paid Insightful Accountant or the author any form of remuneration to be included within this feature. The article is provided solely for informational and educational purposes.

Neither the publication of this article, nor inclusion of any products or individuals referenced herein, represent any endorsement by either the author or Insightful Accountant.

Note: Registered Trademark ® symbols have been eliminated from the articles within this publication for brevity due to the frequency or abundance with which they would otherwise appear or be repeated. Every attempt is made to credit such trademarked products within our respective article footnotes and disclosures.

Like what you’re reading?

Subscribe to our FREE newsletter and we’ll deliver content like this directly to your inbox.


This post originally appeared on
Insightful Accountant