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Adding Fixed Assets

When you purchase new equipment or other non-inventory items, you can add them as fixed assets.

Consult your accountant about which items can be listed as fixed assets. Normally, fixed assets can be depreciated; therefore, an accountant's expertise will be required for listing a fixed asset. You may want to discuss this with your account before adding any items.

Brass Jacks Bookkeeper offers three depreciation methods:

  • Straight Line: This is the most common and simplest depreciation method. With this method, the value of an asset declines based on its useful life.
  • Double Declining: This is an accelerated depreciation method. With this method, the rate of depreciation is double that used with the Straight Line method.
  • Sum of Years Digits: This is the most accelerated depreciation method of the three.

Check with your accountant about which depreciation method to use. The IRS may impose restrictions based on the fixed asset.

To add a fixed asset 'from scratch':
  1. Choose Inventory > Manage Fixed Assets.
  2. Review the items listed in the Fixed Assets dialog box.
    By default, Brass Jacks Bookkeeper only lists items that are still owed by the company.
  3. To include items that have been sold, select the Include Sold Assets check box.
  4. To add a new fixed asset, click the Add button.
  5. In the Fixed Asset Detail dialog box, on the Detail tab, type a name for the asset in the Asset Name box and provide any other information you have.
  6. Click the Financial tab.
  7. Specify the Date Acquired. You can type the date or click the arrow to select a date.
  8. Specify the Useful Life of the item. You may have to consult your accountant about this for depreciation and tax purposes.
  9. Type the Original Cost and the Residual Value of the item. (The residual value is the value, based on the original cost, after the item has been fully depreciated.)
  10. Specify an Asset Account from the list. (If you don't have an appropriate account available, see Maintaining the Chart of Accounts.)
  11. Select a method from the Depreciation Method list: Straight Line, Double Declining, or Sum of Years Digits.
    Check with your account about which method to specify.
  12. Specify how frequently the item's depreciation should be calculated in the Run Depreciation list: Monthly, Quarterly, or Annually.
    Most depreciation occurs annually, but check with your accountant about using other frequencies.
  13. To include one or more images, click the Image tab. (See Editing Fixed Asset Information for details.)
  14. To save the new item's details, click OK.
To add a new fixed asset based on an existing fixed asset:
  1. Choose Inventory > Manage Fixed Assets.
  2. Review the items listed in the Fixed Assets dialog box.
    By default, Brass Jacks Bookkeeper only lists items that are still owed by the company.
  3. To include items that have been sold, select the Include Sold Assets check box.
  4. To add a new fixed asset based on an existing fixed asset, select the item and click Copy.
  5. In the Fixed Asset Detail dialog box, on the Detail tab, type a name for the asset in the Asset Name box and provide any other information you have.
  6. Click the Financial tab.
  7. Review the copied information and adjust any of the information as needed.
  8. To include one or more images, click the Image tab. (See Editing Fixed Asset Information for details.)
  9. To save the new item's details, click OK.