QuickBooks is one of the renowned accounting software available in the market. This financial software offers multiple accounting features to its users for business growth and expansion. We all know that fixed assets are the building blocks of any company. Without having fixed assets, the company cannot run a business in the long term. Hence it becomes essential to manage them in the firm for financial benefits. However, you must be aware that the value of assets decreases over time recorded in terms of depreciation in the financial books. QuickBooks offers a feature dubbed as Fixed Asset Manager (FAM) that computes depreciation on fixed assets. The feature uses various depreciation methods to compute the value of fixed assets after deducting the scrap value.
Role of QuickBooks Fixed Asset Manager (FAM)
With the help of Fixed Asset Manager (FAM), all the fixed assets of the company are recorded correctly in the books of accounts. Fixed assets show the goodwill of the company in terms of survival and growth.
Whenever a new asset is purchased, a journal entry is passed in the books of account. Journal entries are the first step that is done by any accountant while maintaining the books of accounts.
In case if you are not aware, depreciation is the decline in the monetary value of an asset over time. Depreciation is important because the amount is deducted from the original value of an asset, and further, it is beneficial for tax purposes.
Fixed Asset Manager ensures that the obsolete value of the asset is deducted. Once the real value is calculated, various depreciation reports and forms are generated.
QuickBooks Tool Hub
Download and Install QuickBooks Tool Hub
QB tool hub can help you resolve a number of issues with QuickBooks desktop.
Download and install QuickBooks tool hub to get rid of unwanted errors, installation problems, multi-user connectivity issues, and fix corrupt company files.