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How to add Depreciation in QuickBooks - YouTube
Channel: Candus Kampfer
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hey it's Candace creator of confidence
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with cookbooks and in today's QuickBooks
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tips and tricks I want to teach you
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about depreciation so year-end is coming
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and a lot of times people want to know
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how do you enter the transactions you
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get from your accountant into your
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QuickBooks so that they match so come
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look over my shoulder and I will teach
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you how ok so the first step is to go
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into your chart of accounts and the way
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you get there is list chart of accounts
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so what QuickBooks or what we really
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recommend doing is having a main account
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called vehicles and then creating a
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sub-account called whatever your vehicle
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is so if I if you bought a Toyota Tundra
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it would be there and then what we're
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going to do is we're going to actually
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put depreciation below that so I'm gonna
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go down to add new so what the
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accumulated depression is a it's a
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contra account so what it does is it's
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basically deducting it directly from
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that category
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so we're gonna create a fixed asset and
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we're gonna call it accumulated
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depreciation and the reason that we do
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it below your vehicle is because you
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what you want it to do is you want it to
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take away from the value of the Toyota
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Tundra so when you go in you're going to
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put in your depreciation the other side
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of it's going to be accumulated
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depreciation and it will actually let
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you know it'll start removing it from
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the value of the vehicle that you've
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added so then we're going to new one
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more new one this one is going to be an
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expense account this is going to be
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depreciation expense and you're going to
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save and close it so now you have
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depreciation expense and you have
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accumulated depreciation so those that's
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how it works what you could also do
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below is you could have Toyota Tundra
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and then you could have original cost or
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original purchase amount and then the
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depreciation either way you can do it
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doesn't matter then what you're going to
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do is at the end of the year your
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textures going to give you the
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depreciation you're going to go under
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company make general journal entries you
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would pick the date that it was for
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usually
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gonna be the last day of the month or of
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the year month and year I guess you
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could say and you're gonna go down and
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you're gonna pick depreciation expense
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which there was technically one already
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in there I spelled them slightly
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different that's why they make sure I
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got the right one okay so to get rid of
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that other one let's go in and fix it
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real quick it sound like it when I have
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too many of the same thing so here's the
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other one
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sorry that's might nearing you here
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maybe make it a little bit of noise so
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I'm gonna merge these two real quick
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just so that I don't mess you up
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I could technically delete this part but
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hey get a little extra so I just make
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them spelled the same save and close it
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will merge them now they're just one
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okay we'll go back into depreciation
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expense and say that it was $1,000 I'm
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just putting example in put a memo you
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know your depreciation expense for and
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all that kind of stuff that your tax
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professional will give you and then your
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accumulated depreciation on that vehicle
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and then if you hit save and close what
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you'll see happen is that now when you
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go to your chart of accounts you will
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see it now shows your actual value of
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that Toyota Tundra is only 14,000 but
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$1000 is what's been written off under
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depreciation okay so that's how
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depreciation works that was a question
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that I received if this tip has been
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beneficial please share it and don't
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forget to subscribe to this channel so
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that you get all of my tips and tricks I
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will see you guys next week have an
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amazing day take care
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