Entering a vehicle purchase into QuickBooks
Do you need to enter a new vehicle purchase into Quickbooks? And where did the truck go (from my original posting of this)? Well, it changed to my dream car! All kidding aside, when you add a vehicle to QuickBooks, how do you enter this transaction accurately for your business records? So many questions need to be answered first. Let's face it, when do you find out a client has purchased a vehicle? Usually when the transaction pops up in the bank feed. Then it is too late to provide the client with some valid advice. Some concrete questions to ask:
Entering a vehicle purchase: Set up the asset..
Set up the asset..
Entering a vehicle purchase: Set up the loan...
Set up the loan...
The Journal entry...
Loan - Truck (liability account) - $ XXXX.XX (Credit)
- Truck (asset account) - $ XXXX.XX (Debit)
Add on from there. Document or registration fees will also be debits. The downpayment (like the example in the video) may be a truck you turned in. In this case, you credit the asset account to lower it.
For the final journal entry, the credits and debits must equal zero. The above example we are increasing, or crediting, the liability/loan account and increasing, or debiting, the appropriate asset account.
Make sure to scan and attach your document to the transaction. To see another post regarding saving attachments, click here.
Last piece of advice: When in doubt, contact your accounting professional
Last piece of advice:
If this whole transaction just seems like too much to handle seek our your accounting professional for guidance. You want your records to be correct. A quick phone call or email is much better than guessing how to enter it and getting it incorrectly.
I hope this video helps those of you that want to tackle this transaction on your own. There is so much more I could tell you about when it comes to entering auto/vehicle expenses. Remember, if the vehicle is used for personal use (which is 99% of the time, in my experience), there will be some tax implications that you will need to address. You will need to adjust these expenses by the percentage of the usage that was personal.
If you have any questions or would like to see a future video on another topic, please reach out to me on Facebook.