Fixed assets, like equipment machinery, or property, are an integral part of your business. QuickBooks is an enhanced and reliable business accounting software that has been designed for all types of small, and medium-sized companies that have a complete solution where you can effectively manage your finances. It also comes with the utility known as Fixed Asset Manager, commonly called FAM. FAM helps companies control the depreciation, retirement, and maintenance of their fixed assets. We’ll guide you through the ways to Setup Fixed Asset Manager procedure in QuickBooks in this article.
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About Setup Fixed Asset Manager (FAM)
The tool used to depreciate the fixed assets in your QuickBooks Desktop account is called QuickBooks Fixed Asset Manager (FAM). You can quickly manage all of your assets, depreciation, and many other things by setting up a fixed asset manager in QuickBooks Desktop. Depreciation is calculated by IRS guidelines. There are differences between the data files in the FAM and QuickBooks Desktop. It is crucial for managing all assets, tracking, and inputting fixed assets.
Using the QuickBooks Fixed Asset Manager, you may obtain assistance with the following:
- It gives you the ability to calculate the depreciation of assets.
- Entering the asset’s details is simple.
- Journal entries are appropriately informed.
- The reports and various depreciation forms are created with ease.
Prerequisites for Fixed Asset Manager Use
The following details are necessary for you to set up QuickBooks Fixed Asset Manager:
- The company name
- The company’s account chart address
- The company’s phone numbers
- Utilize the Federal Tax ID income tax form.
- The asset’s details are comprehensive.
The following items are then needed to set up the FAM to QuickBooks Desktop Asset Number:
- Give the asset’s details, including all of the details.
- At the end of the year, the depreciation was collected.
- You must have the list of assets if you have added any to the account.
- After the year, state the full book value.
While utilizing Fixed Asset Manager, install QuickBooks.
- Set up QuickBooks Desktop.
- In QuickBooks, open the Fixed Data Manager.
- Choose Transfer client, then adhere to the on-screen instructions.
Procedure for Configuring QuickBooks Desktop’s Fixed Asset Manager
You must use the correct procedure to set up the fixed asset management in your QuickBooks Desktop account to save time. To successfully set up the fixed asset management in QuickBooks, please follow these instructions. Here are the steps.
1. Prepare the Income Tax Form
It’s crucial to set up your income tax form so that FAM can monitor asset depreciation in the proper tax line.
If your QuickBooks Desktop business file creation is just getting started:
- Select Detailed Start under Create a new company from the No Company Open menu.
- According to the Easy Step Interview, how is your business set up? Window, choose the income tax form you need.
- Complete your company’s file.
If you already have a data file in QuickBooks Desktop:
- Select My Company from the Company menu.
- After selecting the pencil icon, select Report Information.
- After selecting your business’s income tax form, click OK.
2. Account setup for the General Ledger (G/L) in QuickBooks Desktop
If you want to track your assets, you may select the Minimal account configuration, which uses a small number of accounts, or the Ideal account structure, which uses individual accounts for each fixed asset.
FAM also adds depreciation to the Depreciation (Expense) account and another item to offset the Accumulated Depreciation account in addition to the asset account. The first time you use FAM, you must first create a particular General Journal (G/L) account.
Minimal Account Setup
| Account Name | Type |
|---|---|
| Fixed Asset Account | Fixed Asset |
| Accumulated Depreciation Account | Fixed Asset |
| Depreciation Expense Account | Expense |
Appropriate Chart of Accounts (COA) Account Configuration
- Each asset (or collection of assets) that you wish to depreciate should have its Fixed Asset account. For instance, establish an account for fixed assets named “Car, Computer, or Furniture.”
- Click on the Chart of Accounts page.
- You may right-click anywhere and choose New.
- Select Fixed Asset and fill out the necessary details.
- Choose “Save & Close.”
- Each Fixed Asset account you set up should have two subaccounts. In one account, the asset’s purchase price will be tracked, and in the other, the cumulative depreciation. You will be able to quickly determine your asset’s book value and cumulative depreciation by doing this.
- Go to the Accounts Chart.
- Now, you can right-click anywhere to select New.
- After selecting Fixed Asset, select Subaccount. Select the relevant parent account.
- Fill out the necessary information.
- Click “Save & Close.”
- To track your depreciation expenditure, create an expense account called Depreciation Expenditure.
- Check out the Chart of Accounts.
- Anywhere, right-click, and choose New.
- Enter the necessary information after selecting Expense.
- Go to Save & Close.
3. The FAM Client Wizard
Select Manage Fixed Asset from the Accountant menu, then pick the option that most suits your company to launch FAM.
- The ideal option for new users is to create a new Fixed Asset Manager client.
- Returning customers who wish to move their assets from the previous year into this year’s FAM can do so by transferring a previous year’s Fixed Asset Manager client.
- Reconnecting the accountant’s review copy with the fixed asset manager enables the addition of assets from the current year to the business file.
- Restore a QuickBooks Fixed Asset Manager Client file from the current year: This option enables the restoration of a Fixed Asset Manager backup file. A backup file for QuickBooks Desktop is not the same as this. The FAM application itself is where you do a FAM backup (File > Backup).
The Client Wizard for Fixed Asset Manager (FAM)
- General: The corporate data from the QuickBooks Desktop file is summarized below.
- Dates: FAM computations and reports, in contrast to QuickBooks Desktop, are predicated on a certain time frame. Enter the start and finish dates of the current year for which the financial statements are being prepared. When an asset is placed into FAM, the program automatically calculates depreciation from the previous year using these dates. Values from the client’s existing depreciation schedules may be substituted for these values. Users should adhere to the year-end procedures after this time frame.
- Basis: You may choose which tabs appear in the Asset screen’s lower half from this screen.
- Methods: You may choose the default methods for newly produced assets on this screen.
- Note: To save time when entering new assets, use the options that are most frequently utilized for your particular accounting practice.
- Synchronization (From/To): You may manage the data transfer between FAM and QuickBooks Desktop using this interface.
4. In Fixed Asset Manager, add an asset.
Only if you did not create your fixed asset accounts in QuickBooks Desktop or if you would want to move the data from FAM to QuickBooks Desktop may you follow the instructions in this section. When you first set up your FAM, data from your QuickBooks Desktop business file will be instantly transferred there. Depending on the sync configuration you select on your FAM, the two apps will keep synchronizing.
- Include an asset in FAM
- Choose Add Asset from the Asset menu, F4 on your keyboard, or Add from the toolbar.
- After adding the asset, fill in the upper section with details like the item’s description, the federal form used to record depreciation, and the general ledger accounts created in QuickBooks Desktop.
- Add the cost, tax system, and depreciation technique, among other depreciation calculation details, in the lower section.
5. Asset Synchronization
Although the data files in QuickBooks Desktop and FAM are different, the two applications may sync data either automatically or manually.
Synchronization Automatically
- Choose the Asset Synchronization Options option from the FAM QuickBooks menu.
- When QuickBooks Fixed Asset Manager starts, choose automatically under the From QuickBooks menu. This option applies to both new and changed fixed asset items.
- To restart Fixed Asset Manager, click OK and exit the application.
Synchronization Manually
- Choose the Asset Synchronization option from the FAM QuickBooks menu.
- Choose “Update Assets from QuickBooks” from the QuickBooks menu to choose manually on the From QuickBooks tab.
- By choosing “Save Assets to QuickBooks” from the QuickBooks menu, you may choose manually under the To QuickBooks heading.
- To refresh the application and enable manual synchronization, choose OK and exit Fixed Asset Manager.
- Open Fixed Asset Manager again.
- To sync data, select Update Assets from QuickBooks or Save Assets to QuickBooks from the FAM QuickBooks menu.
Sample Scenarios for Asset Synchronization
- When entering a check, the small company owner adds the asset as a Fixed Asset list item. The small business owner gives the accountant the backup of the company files, and the accountant opens FAM. He won’t have to enter all of the asset data again because the asset will be imported into FAM, allowing him to add depreciation details.
- The owner of a small firm chooses not to utilize the list of fixed assets. After inputting assets in FAM, the accountant exports them to the item list. A current electronic copy of the small company owner’s fixed assets will be available.
- An asset is added by the small company owner to the list of fixed assets. The accountant syncs, edits, and imports the asset data into FAM. Changes will then be easily accessible to the small business owner.
Each program’s functions in inputting and monitoring assets
Fixed Asset Manager for QuickBooks (FAM)
- You can insert asset details.
- Calculating depreciation is possible.
- One can start journal entries.
- A variety of depreciation reports and formats are available.
- The QuickBooks Desktop
- You can insert asset details.
- You may create personalized reports according to your requirements.
Information flow from FAM to QuickBooks
- QB Desktop to Fixed Asset Manager
- The business’s name, address, and contact details
- Utilized income tax form
- Federal Tax ID
- Chart of Account
- Comprehensive asset data Integrated
- Fixed Asset Manager to QB Desktop
- Asset Number
- Comprehensive details about the asset
- New assets added to Fixed Asset Manager
- Total depreciation at year’s end
- Year-end book value
Conclusion
This article walks you through the whole process of configuring QuickBooks Desktop’s fixed asset management. To do it quickly and without any issues, you must do it appropriately. The staff is here to help you with any problems or questions you may have. They provide you with the finest support for QuickBooks Desktop’s fixed asset manager problems as quickly as possible so you can resume your job. Simply contact the QuickBooks consultant customer service via phone at the toll-free helpline number, or through live chat with professionals.
