 Then we've got the accounts receivable. We did inventory. We did these two are related to property plants and equipment You could call them depreciable assets QuickBooks generally cause them fixed assets Now here we already have the fixed assets set up from our prior accounting system So I'm going to pull it in. I would like to find an account named furniture and equipment now note This one represents those large assets which are building Automobiles furniture and fixtures that we have to put on the books as an asset instead of expensing them when we buy them and Even if you are on a cash basis, you have to do this which is an accrual concept Even if nothing else for taxes generally now that means you're gonna have to have a sub ledger tracking the actual units of equipment as well as the depreciation and Possibly have one on a tax basis method, which is usually different than the book method Or if you're a small company you can just appreciate on a tax-based method. So you don't have different schedules possibly but Usually since you have to do it for taxes anyways The sub ledger is often useful to have done in the tax software by your tax preparer So when you set up these accounts I would not if I was I would use to talk to your CPA and use the accounts that are in the tax software as your guide In terms of what your subcategories will be QuickBooks adds a whole bunch of subcategories in here, which is not May not be the best way to go Depending on what your needs are there a little too detailed or and you might just again want to follow The software that you're gonna use to calculate your depreciation, which is actually which is often the tax software We'll talk more about that later, but right now. I'll just choose our normal strategy I'm gonna go to the tab to the left and I'm gonna look at my chart of accounts and I'm gonna try to find one that has an account type of fixed assets and One that has something that's similar to Furniture and fixer and again, you can look how many fixed assets they have they got building That's normal land and then they got all this stuff here long-term office equipment computers Copiers blah blah for there's furniture, but it's in that subcategory So I mean here's tools machinery and equipment So so they've got a whole lot of stuff which you might not need this detail in the subcategories, right? Because that might not be how it sorts out when you Look at your your tax returns and your depreciation schedules You want to make it as easy as possible To tie them out to whatever your subledgers are gonna be often done by the time Okay, I already said that so let's go ahead and just do use this one So I'm gonna hit the drop-down and I'm gonna say edit this and I want to change the name To the name that that I have here, so I'm just gonna use this similar account It's a fixed asset account, and I'm gonna call it. I'm gonna call it Furniture and equipment usually I would call it furniture and fixture as I think what you would call it on But we'll talk more about that later. So it's save under fixed assets, and I'm gonna call it That's that's the tax form section and then I'm gonna say okay furniture and equipment Okay description looks good I'm not gonna worry too much on the description So the main things I need to have right are this one the tax line could be important if you're if you're using the software To kind of locate your tax line exactly or exporting it to a software Exactly but oftentimes in my experience that doesn't like work perfectly you can have to use the financial statements anyways So I'm not overly concerned with that line Although I'm always hopeful that they get that to the point where it is a time efficient thing to do But I haven't seen it work perfectly and I've tested it out a few times in the case Then you've got the account name and so that's what we changed and the description isn't a big issue as well So I'm gonna hit the drop-down and then I'm gonna say that the date I'm gonna say other date, and I'm gonna be picking it up at the end of 2022 and then the amount we said was 75,000 75,000 and then it'll make a journal entry for that so I'm gonna say save it It'll probably just use a journal entry form because there's not usually a good form for this Meaning what I'll show you here. I'll go to the balance sheet and then let's run it to refresh it And so now we've got furniture and equipment boom if I go into that we're building the balance sheet We can see that we've got the journal entry So notice it used a journal entry unlike every time we did something else Where were they used a form last time they used a bank form and before we saw an invoice used a bill used Now it's used in the journal entry why because there is no form for for the purchase of equipment That's like a default form if you purchased it without cash like if you financed it or something So that's why because buying equipment isn't something that happens every day Therefore it went to the journal entry. So if I go into that, it's an actual debit and credit type of form that is being used Okay, let's close that back out the other side went to opening balance equity like we would expect So the other side is down here in opening balance equity So that looks good. Nothing happened to the income statement. So, okay