I have a client that has one depreciable asset and I am not using the fixed asset manager only the fixed asset list. Should the accumulated depreciation account be set up as a "subaccount" to the fixed asset account or a subaccount of other asset? Please advise.
Accumulated Depreciation can be its own Fixed Asset account.
If you want, you can set your fixed asset accounts up like this:
Furniture & Fixtures
Furn & Fix - Orig Val
Furn & Fix - Acc Dep
With this method, you do not post to the parent account.
Hope this helps,
Laura D
Laura,
I think that way might confuse the client, because they always seem to post to he A/D account instead of the original cost or vice versa.
I much prefer the single fixed asset accounts.
That of course is just my opinion and what I have ran into before.
Think what your Balance Sheet would look like after you completely depreciate a million dollar building, and your Banker asks for a Balance Sheet because you want a loan.
Zero Asset???
