Every now and again a company needs to post a purchase to a fixed asset account to ensure a CPA depreciates it at year end. Some times the fixed asset is merely a credit card purch
ase for an item such as a computer but some times the asset is for a much larger item such as a car or a piece of equipment that your business had to take a loan on. Depending on either of those situations I go about booking the fixed asset differently. Before we begin always talk to your CPA about fixed assets as I'm about to touch upon.