Tracking your fixed assets, running depreciation and disposing assets can never be easier with Bukku. This article will guide you thru how to set up the accounts and asset types.
Assumptions
You have a couple of computer equipments that you are looking to register and depreciate in your Bukku account.
Setting Up for Accounts
You will need to create the following accounts to track the cost & depreciations of your computer equipments. You can add the accounts under Accounting -> Chart of Accounts -> + New.
Name | System Type | Purpose |
Computer Equipments – Cost | Fixed Assets | Account to keep track of the original cost value. |
Computer Equipments – Accum. Dep. | Fixed Assets | Account to track the accumulated depreciation till date. |
Depreciation | Depreciation | Account to track the depreciation expense. |
Pro-Tip: It’s also a good practice to group both Fixed Assets accounts under the same parent account (eg. Computer Equipments), so that your financial statements will be more structured.
Setting Up for Asset Type
Setup an asset type for your computer equipments, your assets are grouped under Asset Type, it’s especially useful when you have a large number of assets.
1. Navigate to Control Panel -> Asset Types.
2. Click on + New.
3. Enter the name: Computer Equipments.
4. Select Computer Equipments – Cost under Asset Account.
5. Select Computer Equipments – Accum. Dep. under Depreciation Account.
6. Select Depreciation under Expense Account.
7. Select a default Depreciation Method, the most common one would be Straight Line.
8. Select a default Depreciation Convention.
Full Month: Depreciate based on complete months.
Actual Days: Depreciate based on actual days in service.
9. Select a default Useful Life in years and months or the yearly depreciation rate in percentage.
10. Click Save.
Congratulations! Once you are done with the steps above, you may proceed to register your fixed assets.