How Do I Record a Capital Expenditure in Quickbooks?

Capital Expenditures in QuickBooks

• Tracking capital expenditures (CapEx) in QuickBooks optimizes fixed asset use for small businesses.
• CapEx hits the balance sheet as an asset, not an immediate expense. It becomes an expense via depreciation over its useful life.
• In QuickBooks, add CapEx to the Fixed Asset Item list. Name and select the asset account, purchase terms and describe it.

Recording Capital in QuickBooks

• Record owner capital invested to start or operate as a capital investment to an equity account in QuickBooks Online. Select New, then the amount, account, and save it.

Managing Expenses in QuickBooks

• Building the Chart of Accounts comes first when entering expenses. The list covers income, costs, assets, and liabilities. Go to Lists and Chart of Accounts. Add accounts for each expense type.
• Reconcile the Cash on Hand account before adding more funds. From its register, click Reconcile and follow prompts. Record vendor bills under those accounts or split transactions.