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Understanding QuickBooks Fixed Asset Manager

QuickBooks is accounting software for small and medium businesses offering management of payments, bills, and payroll functions. An integral part of the accountant version of this software is The QuickBooks Fixed Asset Manager (FAM). FAM enables you to manage your fixed assets from the day of purchase to the day of disposal. The basic information that this feature holds is asset description, purchase date, cost, depreciation method, life, and the associated ledger accounts that require adjustments in QuickBooks. Read the following blog till the end to set up and use Fixed Asset Manager effectively for your business.

While practising this, if you face any difficulties, or require further assistance, feel free to get in touch with QuickBooks Support Team on +1-855-542-9309 We are happy to help.

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How does Fixed Asset Manager Help my Business?

You must already be aware of how QuickBooks eases your business worries. But that is not all, FAM comes in with some added benefits as below:

  1. Asset Information– All the fixed assets of the company are recorded correctly in the books. These showcase the growth and survival rates of the company. This also includes the journal entries.
  2. Depreciation– This is the reduction in the value of an asset over some time. This is computed for up to 6 assets.
  3. Profit/Loss– The gains and losses from the sale of acquired assets is recorded.

How to Set Up Fixed Asset Manager in QuickBooks?

Since QuickBooks Desktop and QuickBooks Fixed Asset Manager have different files, it is important for you to understand how to set up FAM correctly to ensure a smooth run of the software.

Setting up Income Tax Form– This form is necessary to sync asset depreciation and the appropriate tax line.

  1. From the No Company Income window > Create a New Company > Detailed Start.
  2. Easy Step Interview window> select your income tax form.
  3. Finish creating your company file.

Setup General Ledger (G/L) Account

  • Create a Fixed Asset account for each asset.
  • Add 2 sub-accounts for each Fixed Asset account to track the cost and the depreciation respectively.
  • Create an expense account named Depreciation Expense to track your Depreciation expense.

FAM Client Wizard

  • From the Accountant menu, select Manage Fixed Asset and choose the appropriate business option. Here you can choose between being a first-time user, bringing the prior year’s assets to the current year, bringing current year assets in the company file, and restoring a backup file.
  • Understanding Dates- FAM calculations are based on defined periods. Input the Current Year Beginning and End dates carefully. The program will automatically apply depreciation accordingly.
  • Understanding Basis- Select the basis on which you wish to calculate depreciation.
  • Understanding Methods- Select the often-used accounting practice. This helps while entering new assets also.
  • Understanding Synchronization- This feature helps you to move data in between FAM and QuickBooks Desktop.

Add asset in FAM– The information you set up in QuickBooks Desktop will automatically be synced with the FAM setup.

  1. Select Add from Toolbar> Select F4> Add Asset from Asset menu.
  2. In the top portion, add a description, federal form, and G/L accounts.
  3. At the bottom portion, add description calculation costs.

Asset Synchronization– QuickBooks Desktop and FAM have different data files which can be synced by following the steps below.

  1. From the FAM QuickBooks menu, select Asset Synchronization options.
  2. Select Automatically when QuickBooks FAM opens from QuickBooks.
  3. Select OK and close FAM to save. You are all set now.

How to Use FAM QuickBooks?

FAM comes in with a lot of features that are beneficial for your business. Listed below are the ways to accomplish some key tasks of this software.

Assign an Account to Multiple Assets – Converting or Importing from one QuickBooks version to another might leave some accounts hanging, to avoid this, accounts should be assigned manually

  1. Open FAM.
  2. In the Schedule tab, highlight assets that have to be assigned to a particular account.
  3. Right-click these assets and choose Assign G/L accounts to Assets.
  4. Select the, and click OK.

Change/ Add Depreciation Setting– You may need to change the setting for a fixed asset for FAM to calculate previous and current depreciation accordingly.

  1. Open FAM.
  2. From the File menu, select Client Information.
  3. From the Methods tab, select the appropriate depreciation method.
  4. Click OK to save.

Depreciate an Old Asset– A business may have acquired assets before shifting to FAM. This feature helps in managing such assets.

In QuickBooks Desktop

  1. From List, Choose Fixed Asset Item List.
  2. Select Item, and New.
  3. Enter Information, select OK.

In FAM

  1. In Asset Synchronization, select OK.
  2. In the Schedule tab, double-click your created asset.
  3. On the Federal column, select the amount displayed in Prior Description.
  4. Make changes by adjusting all columns.
  5. Click Save.

Export QuickBooks Fixed Asset Item Items into ProSeries Form 4562-Since QuickBooks is based on the Calendar Year, QuickBooks FAM can only export data to the same year of ProSeries.

In QuickBooks

  1. Create FAM assets.
  2. From the Accountant menu, select Manage Fixed Asset.
  3. Select Create a new FAM client> OK> Next.
  4. Select Applicable Basis> Next.
  5. Select Default Depreciation Method> Next.
  6. Select a method to bring fixed asset items in Fixed Assets Module from QuickBooks Desktop> Next.
  7. Select the type of assets to save in Fixed Assets Item List> Next.
  8. Select Finish> OK.

In FAM

  1. From the File menu, select Export.
  2. Choose the file from the Export ProSeries Tax Client File List.
  3. Click Export> OK.

In ProSeries

  1. The import should show Completed on opening the client file.
  2. All assets will be displayed in the asset list of ProSeries Form 4562 Depreciation and Amortization Schedule and Asset Entry Worksheets.

Import Fixed Assets from Excel into FAM– Information from third-party applications can also be transferred, given that the files are exported as Comma Separated Value (.CSV) files.

  1. Open FAM.
  2. From File, select Import.
  3. Select Comma Separated (CSV) to begin Import Wizard.
  4. Follow pop-ups to complete the import.

Select the basis to post a Journal Entry– FAM is flexible in terms of changing the basis to post journal entries on.

  1. Open FAM.
  2. From the QuickBooks menu, select Post Journal Entry to QuickBooks.
  3. Select the desired posting basis from the Basis to Post menu.
  4. Post the entry as usual.

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Understanding fixed asset working can be tedious sometimes, but it is never impossible. QuickBooks provides software that resolves your financial record maintenance only through a few taps. And with Fixed Assets Manager, QuickBooks has a way of tackling a major part of your business in a simplified manner. However, if you feel stuck somewhere, and require a hand, QuickBooks Support Team is always available to you at +1-855-542-9309.

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