New Vehicles: How to add in QuickBooks

Let’s be honest, purchasing a new vehicle for your business is always exciting (who doesn’t love the way a new car smells) yet brings on a handful of ‘to-do’ items.  Registration, insurance, and don’t forget adding in the vehicle purchase in Quickbooks are at the top of the list.  We are here to congratulate you on your recent purchase and help you understand how to record the vehicle in QuickBooks.   

Step 1: You need to record the purchased vehicle as a ‘fixed asset’ account in QuickBooks.  

               TIP: A fixed asset is anything purchased for the business that will serve you long-term (typically more than 12 months).  

• Visit the Chart of Accounts. 
• Click on ‘New’. 
• Select ‘Fixed Assets’ from the categories provided. 
• Enter the name and description of the account. 
• Select the ‘Detail Type’ 

Step 2: If you purchased the vehicle with a loan, you will need to enter and track the liability. 

• Visit the Chart of Accounts. 
• Click on ‘New’. 
• Click on ‘Long Term Liability’  
• Click ‘Next’. 
• Enter the name, description, and details of the account. 
• Click Save. 

               TIP: Leave the ‘unpaid balance’ field blank at this time.   

Step 3: You need to record the proper loan amount in QuickBooks.  

• Select the ‘ Create Button’. 
• Select ‘Journal Entry’. 
• Select ‘ Liability Account’. 
• Enter the dollar amount for the loan on credit. 
• Click the ‘Asset Account’ that you would like the dollar amount to be associated with. 
• On the debit side, enter the dollar amount of the loan.

Step 4: Enter all loan payments. 

• Make sure to link them to the associated loan entry.  

Are you interested in learning more about ShoreSource Business Solutions, LLC?   
Feel free to reach us at 843.729.2961 or info@shoresourcebiz.com.