How to track fixed assets on QuickBooks

intermediate 8 min read Updated 2026-03-18

Quick Answer

Track fixed assets in QuickBooks by enabling the Fixed Asset Manager feature, creating fixed asset items, and recording purchases through journal entries or bills. QuickBooks will automatically calculate depreciation and maintain asset records for tax reporting.

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Prerequisites

QuickBooks subscription with fixed asset management features
Administrative access to your QuickBooks account
List of fixed assets to track
Asset purchase dates and values

Step-by-Step Instructions

Enable Fixed Asset Manager

Navigate to Settings > Account and Settings > Advanced tab. Scroll to the Other preferences section and toggle on Track fixed assets. Click Save to activate the feature.

This feature may require a QuickBooks Plus or Advanced subscription

Set Up Fixed Asset Accounts

Go to Settings > Chart of Accounts and click New. Select Fixed Assets as the account type and create specific accounts like Equipment, Vehicles, or Furniture. Also create corresponding Accumulated Depreciation accounts for each asset category.

Use separate accounts for different asset types to maintain better organization

Create Fixed Asset Items

Navigate to Settings > Products and Services > New > Non-inventory. Enter the asset name, select the appropriate fixed asset account from the dropdown, and add relevant details like asset description and purchase information.

Record Asset Purchases

Create a Bill or Journal Entry to record the asset purchase. For bills, go to Expenses > New > Bill, select your vendor, and add the fixed asset item. For journal entries, debit the fixed asset account and credit cash or accounts payable.

Use bills when purchasing from vendors, journal entries for cash purchases or transfers

Set Up Depreciation

Access the Fixed Asset Manager from the main dashboard or through Reports > All Reports > Fixed Asset Manager. Click on your asset and select Edit Asset Details. Enter the Asset Life, Depreciation Method (straight-line, MACRS, etc.), and Salvage Value.

Consult with your accountant to determine the appropriate depreciation method and asset life

Track Asset Locations and Details

In the Fixed Asset Manager, click on each asset to add additional tracking information such as Serial Numbers, Location, Department, and Employee Assigned. Use the Custom Fields option to track specific details relevant to your business.

Regular updates to asset locations help with physical inventory counts

Generate Depreciation Entries

In Fixed Asset Manager, click Depreciate Assets and select the depreciation period. Review the calculated depreciation amounts and click Record Depreciation to create journal entries. These entries will automatically debit depreciation expense and credit accumulated depreciation accounts.

Set up recurring monthly or annual depreciation entries to maintain accurate books

Monitor Asset Reports

Access fixed asset reports through Reports > Business Overview > Fixed Asset Listing or Fixed Asset Manager. Review reports like Asset Valuation Summary, Depreciation Schedule, and Asset Listing Detail to track asset values and depreciation.

Export these reports for tax preparation and insurance documentation

Common Issues & Troubleshooting

Fixed Asset Manager is not available in my QuickBooks version

The Fixed Asset Manager feature requires QuickBooks Plus or Advanced subscription. Upgrade your subscription or manually track assets using fixed asset accounts and journal entries.

Depreciation calculations appear incorrect

Verify the Asset Life, Purchase Date, and Depreciation Method in the asset details. Check if the Salvage Value is correctly entered and ensure you're using the appropriate tax depreciation method for your jurisdiction.

Unable to find created fixed assets in reports

Ensure assets are properly categorized under Fixed Asset account types in your Chart of Accounts. Check that the asset purchase transactions were recorded correctly and refresh your reports by clicking the Refresh button.

Depreciation entries are creating duplicate transactions

Check the Fixed Asset Manager for previously recorded depreciation entries before creating new ones. Use the Undo feature if duplicate entries were created, or manually delete duplicate journal entries from the Accounting > Journal Entries section.

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