MBE QuickBooks Tips
BY DAN RIEHLE
When purchasing capital expenditures, you want to make sure you are recording it into a fixed asset account rather than an expense account. A capital expenditure can include items such as property, buildings, and equipment. Capital expenditures need to be depreciated over a period of years rather than expensing the whole cost in the year it was purchased.
A useful QuickBooks tool is the Fixed Asset Item List. You can add each fixed asset purchase by going to the top toolbar and selecting “Lists” and then “Fixed Asset Item List”. This tool will allow you, and your accountant, to track all the purchase information in the event of a sale, trade-in, or disposal of the asset.
Contact MBE CPAs if you need assistance with this.