Managing Accounting In Aplos
Common Accounting Transactions
Tracking Fixed Assets
Whether your organization is large or small, it likely has some fixed assets, so it’s important to know the requirements for tracking them. Accurate accounting is essential for stewarding your resources well. In this lesson, you will learn about asset management and how to track fixed assets to demonstrate accountability in your organization.
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We will cover the following topics and have noted the timestamps if you wish to skip ahead to review a specific area:
Overview Of Fixed Assets
- What Is A Fixed Asset? [1:05]
A fixed asset is an item your organization owns that was purchased for more than a predetermined amount. It brings value to your organization over time, and the cost is spread out over its useful life.
- Capitalization Policy [4:03]
Your organization’s capitalization policy determines if an item is a fixed asset rather than a regular expense. This document states that a fixed asset is something that has a useful life of more than one year and costs more than a specific amount that makes sense for your organization.
- Depreciation [6:50]
Depreciation means an item loses monetary value over time. A depreciable life policy determines the length of time that fixed assets should be depreciated. These life cycles are generally determined by the modified accelerated cost recovery system (MACRS), based on guidelines provided by the IRS.
- Methods Of Depreciation [8:38]
Methods of depreciation include straight line basis, which is the most common, as well as double declining balance (DDB), sum-of-the-years’ digits (SYD), and unit of production.
Accounting For Fixed Assets
- Chart Of Accounts [14:40]
To track fixed assets, you will need to set up your chart of accounts accordingly. Go to your chart of accounts in Aplos. For more help on editing your chart of accounts, see the support resource for setting up your chart of accounts.
- Journal Entry [17:00]
Learn how to create journal entries for purchasing fixed assets, as well as selling or disposing of them. Go to your journal entries in Aplos.
Fixed Assets In Aplos
- Aplos’ Fixed Asset Module [22:10]
The fixed asset module in Aplos automatically creates journal entries for you to post and applies monthly depreciation over the lifespan of the item. It also makes it easier for your organization to track a large volume of fixed assets, reduces errors or missed journal entries, makes it easy to dispose of fixed assets, and more. The fixed asset module is an add-on feature in the Aplos Software Suite. Go to your fixed assets in Aplos. View the resource on tracking fixed assets.
- Fixed Asset Reports [32:38]
Run the reports your organization needs, such as your Balance Sheet and your Depreciation Schedule. Go to your reports in Aplos.