Asset Types (sometimes referred to as Asset Classes) are a method that bookkeepers and accountants use to group similar fixed assets together.
With Asset.Guru, you can choose a default depreciation method and rate for for each Asset Type for both accounting (book) and Tax depreciation methods. Only the Accounting (Book) value will be journal posted into an integrated Accounting Package like Xero and QuickBooks online.
How to set up an asset type:
- Navigate to the Administration page
- Scroll down the page and click “Set up your asset types”
- Click the “Add a New Asset Type” button
- Enter the name of the asset type in the description field. If you would like to set a default depreciation rate for your accounting and/or tax book, please continue onto Step 5, otherwise continue to Step 6.
- To set a default depreciation rate for your accounting and/or tax book,
- Select a default depreciation type from the drop down;
- Select a default averaging method from the drop down; and
- Enter the default depreciation term or rate.
- Click Confirm.
There are no technical limits to how many asset types you can create, however, practically the best practice advice is to use the minimum number needed to decrease the chance of confusion or duplication in the future.