Fixed Assets Accounting in QuickBooks
Fixed assets accounting amounts to three things:
Keeping a list of the assets that you own
Recording depreciation on any depreciable assets
Recording the disposal of an asset, including any gain or loss on disposal
The Fixed Asset list, which I describe in the next section, takes care of the first task. The Fixed Asset list doesn’t directly help you with the second or third tasks shown in the preceding list, though. You need to understand this important point. You still need to calculate and then enter asset depreciation. And when you dispose of an asset, you still need to construct a journal entry that records the disposition.