QuickBooks Online is comprehensive accounting software that has many features that can really streamline your real estate investment firm’s accounting processes. This practical and intuitive accounting software makes things like recording the purchase of an asset, including property, buildings, and deposits easier.
To record an asset purchase in QBO, you have to follow the steps below:
First, you need to add the fixed asset item into QuickBooks. Go to “List > Fixed Asset Item List”.
Next, on the bottom left corner, you will see the “Item” button.
Click “New” to open the New Fixed Asset Item box. Here you can input information about this new asset. You want to be detailed in your explanation about what type of asset this is. You want to include which account the asset is connected to and all of the information about the asset in the “Purchase Information” section. In the “Asset Information” section, you can input detailed information about the new asset you acquired. Not all of this is necessary for your taxes; the only exception is the location of the asset, especially if your business is working in multiple states.
After entering the information about the asset, click the “OK” button located in the upper right corner.
You may be required to create a fixed asset account for the item. Fortunately, it is easy for you to add accounts to QuickBooks Online:
To describe the fixed item, the first thing you want to do is to select the field named “Asset Account.”
Enter the name for the account. For example: real estate purchased 4314 Elliott Ave. N. Minneapolis Minnesota.
Click the “Save & Close” button.
