Easy Tech TutsHow to Record Depreciation in QuickBooks Online Easily 2026
By Impran M N
As business assets age, their book value drops, and recording that depreciation keeps your financial statements accurate. This guide covers how to record depreciation for an asset in QuickBooks Online.
01Confirm your fixed asset accounts
Make sure the asset you're depreciating has a corresponding fixed asset account set up.
02Set up a depreciation expense account
Create or confirm a dedicated account for tracking depreciation expense.
03Create a journal entry
Record a journal entry that debits depreciation expense and credits accumulated depreciation for the asset.
04Repeat on your depreciation schedule
Enter the journal entry on a recurring basis, such as monthly or annually, according to your depreciation method.
Frequently asked questions
Does QuickBooks Online calculate depreciation automatically?
QuickBooks Online doesn't automatically calculate depreciation for you, so the amount is usually determined outside the software and entered manually.
What depreciation method should I use?
Common methods include straight-line and declining balance, and the right choice depends on the asset and your accountant's guidance.
Can I automate the monthly depreciation entry?
Yes, you can set up a recurring journal entry so the same depreciation amount posts automatically each period.
Does depreciation affect my cash flow?
No, depreciation is a non-cash expense, so it affects your reported profit but not actual cash movement.
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