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Create a Fixed Asset Account

Sometimes it's necessary to create a fixed asset account in your chart of accounts to track worth and depreciation overtime

Samuel avatar
Written by Samuel
Updated over 11 months ago

Overview

Fixed assets are items that have a useful life of more than one year and are not easily convertible to cash. Examples of fixed assets include property, equipment, and vehicles.

Tracking your fixed assets is important for several reasons. First, it allows you to accurately report the value of your business assets on your financial statements. Second, it enables you to calculate depreciation, which is the process of allocating the cost of a fixed asset over its useful life. Depreciation expense is deducted from your business's taxable income, which can help you save on taxes.

The value of an organization’s fixed assets can be considered part of its total assets, which is a measure of the company’s overall size and financial strength. For example, if you have $100 million in current assets and $50 million in non-current (fixed) assets, your total asset base would be $150 million.

In summary, creating a fixed asset account in DoorLoop is a straightforward process that can help you keep track of your business's fixed assets and save on taxes.

The Steps

  1. To create a fixed asset, click Accounting on the main menu and then click Chart of Accounts.

  2. On the top right corner, click + New Account.

  3. On the New Account window, under the Account Info section, enter the following:

    • Type: Asset > Fixed Assets

    • Account Name: What you want to name your fixed asset

    • Description: (Optional)

    • Active Account: Yes

  4. Click Save to Finish.

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