How To Record A Vehicle Purchase In QuickBooks?

In business, there are different categories of assets and each item that is purchased for the business falls under any of these categories, a vehicle would be under the fixed assets and this article will give step by step instructions on how to record a vehicle purchase in QuickBooks.

Steps on how to record purchase of a vehicle in QuickBooks:

How to record vehicle purchase in QuickBooks-min

  1. Open the QuickBooks and then the company under which you want to record the asset.
  2. Go to the section Home, press Ctrl-A to open the chart of accounts and then for a new account press ctrl-N.
  3. Once that is done a new window will open with the title ‘add new account’
  4. Beside the Account Type select ‘Fixed Account’.
  5. For the Account Name give name of the vehicle you bought.
  6. Next click on ‘Save & Close’.
  7. This will open another window with ‘Chart of Accounts’.
  8. Press Ctrl-N once again so that the liability account can be opened for loan and choose the loan type.
  9. Once again the Add Account window will open select the type of loan, e.g. ‘Short Term Liability’ or ‘Long Term Liability’ from the drop down menu.
  10. Next type the name of the loan, e.g. Vehicle Loan beside the ‘Account Name’.
  11. Next click on ‘Save & Close’
  12. Furthermore, it is possible for you to add two additional accounts, such as a sub account for depreciation of the asset and another sub account that is for the loan interest.

Two ways to record your purchase:

  • The easiest is doing a journal entry, mainly if financing is there. Debits and the credits can be entered into the journal manually.
  • Many people might not be comfortable with doing the manual input of debits and credits then to do the accounting you can use the forms that are available in QuickBooks. However you might not want to use it in case it is being financed and funded simultaneously with the purchase and online banking is being used.  As there will be transaction that might not reflect on the bank statement.

Journal Entry to Record the Vehicle Purchase

  1. Open the company page tab and from the menu select ‘Make General Journal Entries
  2. Under the Account add the vehicle name and write under the memo as Vehicle purchase.
  3. Under the Account once again type ‘Vehicle Loan’ if required and type under the Memo section again.
  4. Next under the Account, write the name of the bank to record the down payment.
  5. Next under the Debit section write the purchase price of the vehicle
  6. Next under the Credit section write the amount that has been loaned by you beside the vehicle loan category.
  7. Put the down payment amount for the Bank under the credit section beside the name of the bank.
  8. Then save & close.
  9. Next you can generate the balance sheet from clicking on the Reports Menu and select ‘Company & Finance’ and then click on Balance Sheet Standard.
  10. This will then open a new window showing the purchase details.

Entry Through Forms

  • Open the QuickBooks Company page, and click on record Deposits.
  • A new vendor needs to be added and then put the name for which the loan and then the memo and the loan amount. Then Click and Save
  • To Purchase the vehicle, click and open “write a cheque”. Add a vendor, name the vehicle under the Account and the purchase price. Then save it.
  • Generate the Balance Sheet again and it will show the record of the purchase.

 AskforAccounting Helpdesk:

Get in touch with us at 1800-865-4183.

If you come across any issue regarding a vehicle purchase in QuickBooks, then feel free to get in touch with the AskforAccounting QuickBooks payroll support providers at their tollfree number.

How to use Quickbooks enterprise? Is there any support provided in Canada?

QuickBooks Enterprise programming is an extraordinary software that is ready for you to use to maintain your books of accounts. The program is designed in a way that it can be used by any business possible, be it a:

  • Developer or a real estate property,
  • A small sized entrepreneur,
  • Loan contractor,
  • B2B businesses or even B2B business etc.

What’s in there in QuickBooks enterprise 2018?

QuickBooks enterprise helps you ease up your work in many different ways. It helps you not only with the reporting task but things get really easy on the tracking aspect. If you have the physical inventory with you then tracking may be the biggest issue with you.

Though data can also be maintained in excel but it would require fft setup in excel program of microsoft. But the issue with excel is that it requires loads of manual data entry stuff which would ultimately increase your labour working hours. Thus QuickBooks will always be the best solution as you would just need to import your data directly in QuickBooks then your Excel.

But all gets sorted with QuickBooks Enterprise. The program can be easily coordinated and integrated with other third party applications all this easy. If you want to know more about how integration is done then read out this post.

QB enterprise is also very helpful because it helps you send various attachments over QB messenger. Other things that can be attached include:

  • Estimation,
  • Proposal,
  • Receipt etc.

Not only QB messenger is the service you can take advantage of but there is one add on feature that is point of sale that can help you with all the tracking. If you don’t know how you can do that all with ease then QuickBooks POS telephone support is for you.

Various features of QuickBooks enterprise program for Canadians:

  • Void Entries: This is one of the most awesome features that help you with deleting all the reports that are no longer needed. This may include reports like your old invoices or bounced checks.
  • Bookkeeper Tools: Whatever you need to manage your business is readily available at QuickBooks Enterprise accounting platform. Some of the tools include:
    • Bulk transactions recording,
    • Automatic Reviewing Entries,
    • Customer Data detail analysis,
    • Discount Invoicing system.
  • Bill Tracker: This component was presented at the end of 2013 and has been received very well. The feature is very much similar to the income tracker that used to come in older QuickBooks versions. It allows you to vouch over your vendor related entries.
  • Mass Clear Send Forms: If you have too much to send then you can easily save your both time and money by making use of this feature. Just click on the send all button and you will all be sorted.
  • Auto Copy Ship-To Address: This is an extremely supportive element for organizations. As it enables clients to change over deals request to Purchase orders with DROP SHIP include.

Though there are many different features and many features have even been customized specially for the user in Canada that you can make use of but it is very important for you to understand that Quickbooks be it any version is a tedious platform. You cannot master that of your own. Thus if you need help with operating the software then you should get the help.  You can dial QuickBooks Canada Support at 1800-940-7442.