Did you know that if you have fixed assets, those fixed assets can be depreciated?
this would be important to know because it literally means more cash in your pocket. But in order for that to happen you have to know what you bought, when you bought it, how much you paid for it, and if you sold it or threw it away, when that happened.
there’s a fixed asset list and quickbooks so you should be able to run a simple report there and see if you’re fixed assets are in there. If not send A list to your accountant or bookkeeper and asked them to make the appropriate entries in your chart of accounts.
fixed assets generally are things there and stick around for at least a year and that you paid a little bit of money for my computers or furniture. Depreciation happens when those things get old and worn over time. The IRS let you write off expenses in your business, what a big expense, they make you take the money a little bit each year instead of all at once. That’s depreciation.
if you have depreciated it each year then in theory that value was going down to, so when you sell it and make money, that money has to go against your depreciation. If there’s anything left over then you have to pay tax on that.
so if you’re not keeping track of your fixed assets you can’t do any of these things and your accountant generally won’t know what assets you have or to ask about them unless they are also your bookkeeper, which I don’t recommend.