Assets & Depreciation

Assets & Depreciation

Assets & Depreciation

Currently, Lizzy has no tracking of Fixed Assets capabilities.  ( We are looking into changing that in the coming months. )  But for now, this is an instructional look at how to handle these assets in Lizzy currently.

Assets and Depreciation need to be accounted for on your financial statements. For example, you have a company vehicle and you need to account for it. First, you need to insert the vehicle into Lizzy as a Tool in the units section, so you can keep track of it and perform services on it when need be.

If you need a payable for it, you would do an expense po hitting the appropriate Fixed Asset – Cost account. For example, 155.00.001. If you don’t need the payable, then you would do a gl adjustment to get a beginning balance in here debiting this account and crediting your equity (the account you use to offset entering all your beginning balances).

Over time, these items will depreciate. You will need to account for them via gl adjustments. For this adjustment, you will use the Fixed Asset – Accum Dep account (using our example above, 155.00.002 and offsetting this with your expense account for deprecation (685.00.000). You should be handling all your fixed assets in this manner.