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).
Step 2: If you purchased the vehicle with a loan, you will need to enter and track the liability.
TIP: Leave the ‘unpaid balance’ field blank at this time.
Step 3: You need to record the proper loan amount in QuickBooks.
Step 4: Enter all loan payments.
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