This article will help you to set up Fixed Asset Manager (FAM) to work along with your company file. The QuickBooks software and QuickBooks Fixed Asset Manager uses different data files and it is essential to know the procedure to set up Fixed Asset Manager to make sure that your fixed asset financial information is being managed properly.

How To Setup The Income Tax Form?

Follow the below mentioned steps to start using the QuickBooks Desktop Fixed Asset Manager:

Step 1. Set Up The Income Tax Form

It is important to set up the income tax form for Fixed Asset to map the asset depreciation under the correct tax line.

If you’ve just started the process to create your QuickBooks Desktop company file:

  • Select Create a new company > Detailed Start from the No Company Open
  • select your income tax form from the Easy Step Interview, How is your company organized?
  • Finish the process of creating your company file.

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If you already have an existing QuickBooks Desktop data file:

  • Go to Company > My Company
  • Click on Edit (Pencil Icon) and go to the Report Information
  • Click on the income tax form for your business and then tap on OK.

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Step 2. Set Up General Ledger (G/L) Account In QuickBooks Desktop

You get the option to track your assets via Minimal account setup or Ideal accounting setup according to your preferences. Also, the FAM posts depreciations into the Depreciation account and additional entry to offset the Accumulate Depreciation. It is important to have a particular General Journal accounting before using the Fixed Asset Manager for first time.

Minimal Account Setup

ACCOUNT NAME TYPE
Fixed Asset Account Fixed Asset
Accumulated Depreciation Account Fixed Asset
Depreciation Expense Account Expense

Ideal Account Setup in Chart of Accounts (CoA)

  • Make a Fixed Asset account for all the available assets (or group of assets) for which you want depreciation. For Example: Create a fixed asset account with a name of Vehicle, Computer or Furniture.
    • Navigate to the Chart of Accounts.
    • Right-click anywhere on the window and then select New from the drop-down list.
    • Select Fixed Asset, then provide all the required information
    • Click on Save & Close.
  • Insert two subaccounts to all the Fixed Asset account you created earlier. One of the account will map and manage the cost of the asset and the second one will map the accumulated depreciation. Doing this will allow you to show the book value and accumulated depreciation of your asset at first instance.
    • Navigate to the Chart of Accounts and follow the previous steps again.
    • Select Save & Close.
  • Make an expense account with a name of Depreciation Expense. It will track your depreciation expense.
    • Go to the Chart of Accounts.
    • Right-click on the window and then select New from the drop-down.
    • Select Expense and then add all the required information.
    • Click on Save & Close.

Step 3. FAM Client Wizard

Go to the Accountant menu, select Manage Fixed Asset then select the appropriate option for your business to open Fixed Asset Manager.

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  • Create a new Fixed Asset Manager Client: This option is very affective for the users who are using FAM for the first time.
  • Transfer a prior year Fixed Asset Manager client: This option can be used for returning users who want to bring last year’s assets into this year’s access.
  • Reconnect Accountant’s Review Copy with Fixed Asset Manager: With this option, you will be able to bring the current year assets into your company file.
  • Restore a current year QuickBooks Fixed Asset Manager Client file: With this option, you’ll be able to restore a backup of Fixed Asset Manager. This backup file is different than the QB backup file. A FAM backup can only be done within the FAM program (File > Backup).

The Fixed Asset Manager (FAM) Client Wizard

General: Overview of the company details from the QuickBooks Desktop file.

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Dates: FAM calculations and reports are base on a specified period of time. Add the Current Year beginning and ending dates for which you are creating the financial statement. These dates are used to evaluate the previous year depreciation when an asset is entered into FAM. You can override these values from the client’s current depreciation schedules.

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Basis: This screen gives you the option to choose which tabs show in the bottom half of the Asset screen

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Methods: In this option, you can select the default methods for the latest assets.

Note: You need to select the settings that you use the most for your personal accounting practice to save your time.

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Synchronization (From/To): In this window, you can manage the movement of data between FAM and QuickBooks Desktop.

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Step 4. Add Asset In Fixed Asset Manager

The steps mentioned in this section of the article are only valid if you’ve not set up your fixed asset accounts in QuickBooks Desktop or if you like to send the details from FAM to QuickBooks Desktop. Whenever you set up FAM for the first time, the QuickBooks Company file will automatically go to your FAM. The two applications will keep on the sync process that depends on the sync set up that you choose on your FAM.

  • Insert an asset to FAM:
    • Click on Add from the toolbar;
    • Press the F4; or
    • Choose Add Asset from the Asset menu.
  • Once you add the asset, add information at the top like description, federal form used to report depreciation, and general ledger accounts set up in QuickBooks.

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  • The lower portion will be used to insert depreciation calculation details like cost, tax, system and method.

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Step 5. Asset Synchronization

Kinds of Synchronization in FAM

As we’ve already said that the QuickBooks Desktop and FAM uses different data files, but, the both the programs can easily be synced with each other by Automatic or Manual method of sync.

Automatic Synchronization

  • Go to the Asset Synchronization Options from the FAM QuickBooks
  • Go to the From QuickBooks tab and click on Automatically when QuickBooks Fixed Asset Manager opens and Both new and modified fixed asset items.
  • Click on OK and close Fixed Asset Manager to refresh the changes made in the program.

Manual Synchronization

  • Go to the Asset Synchronization Options from the FAM QuickBooks
  • Go to the From QuickBooks tab and click on Manually by selecting “Update Assets from QuickBooks” in the QuickBooks menu
  • From the To QuickBooks tab, click on Manually by selecting “Save Assets to QuickBooks” from the QuickBooks menu.
  • Click on OK and close Fixed Asset Manager to update the changes and make manual syncing available.
  • Open Fixed Asset Manager again.
  • Select Update Assets from QuickBooks or Save Assets to QuickBooks from the FAM QuickBooks menu to sync information.

Roles Each Program Plays In Entering And Tracking Assets

QuickBooks Fixed Asset Manager (FAM)

  • You can enter Asset information
  • You can calculate Depreciation
  • You can initiate Journal entries
  • Various depreciation report/forms can be generated

QuickBooks Desktop

  • You can enter Asset information
  • You are allowed to generate customized reports based on what you need

Flow Of Information Between QuickBooks And FAM

QuickBooks Desktop to Fixed Asset Manager

  • Company Name
  • Company Address
  • Company phone numbers
  • Income tax form used
  • Federal Tax ID
  • Chart of Account
  • Detailed asset information

Fixed Asset Manager to QuickBooks Desktop

  • Asset Number
  • Detailed asset information
  • Assets that have been added within Fixed Asset Manager
  • Year-end accumulated depreciation
  • Year-end book value

The provided steps will allow you to set up Fixed Asset Manager by the manual procedure. However, there are various errors associated with the Fixed Asset Manager that can occur while synchronizing it with the QuickBooks software. These errors are very critical in nature and they can corrupt your entire database including the FAM files and the QuickBooks company files as well. But, you don’t have to worry about such situations as we are here to prevent you from such scenarios. If you are facing any kind of issue while setting up the FAM then you can contact our technical support department by dialing the toll-free QuickBooks Support Phone Number +1800-324-6955 and get instant support for all your QuickBooks issues.

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Set Up Fixed Asset Manager (FAM): [Complete Guide]

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