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

In this article, you will learn how to set up Fixed Asset Manager (FAM) to enable to it to work along your company file. QuickBooks Desktop and FAM requires different data file and you must know the complete process to set up Fixed Asset Manager to ensure that all your fixed asset financial data is properly managed.

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

You must set up an income tax form for Fixed Asset to track the asset depreciation in the right tax line.

If you have recently started creating your QuickBooks Desktop Company File:

  • From the No Company Open screen, choose Create a new company and then select Detailed Start.
  • Go to the “Easy Step Interview, How is your company organized?” section and choose your income tax form.
  • Complete the process to create your company file.

Fixed Asset Manager

If you already have an existing QuickBooks Desktop data file:

  • From the main menu, go to Company > My Company.
  • Select Edit (Pencil Icon) and open the Report Information.
  • Choose your income tax form for your business and then select OK.

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

This option allows you to map your assets through Minimal account setup or Ideal accounting setup as per your preferences. The Fixed Asset Manager also posts depreciation under the Depreciation account and additional entries for offsetting the Accumulate Depreciation. It is required to have specific General Journal accounting prior to using the FAM for the 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)

  • Create a Fixed Asset account for each asset available for which you want to create the depreciation. For Example: Create a fixed asset account with a name of Vehicle, Computer or Furniture.
    • Open the Chart of Accounts.
    • Right-click on the window and choose New from the drop-down options.
    • Choose Fixed Asset and then enter all the important details.
    • Select Save & Close.
  • Enter two subaccounts for all the created Fixed Asset account. One account will track and manage the asset cost and the other account will track accumulated depreciation. This will help you in displaying the show the book value and accumulated depreciation of your asset for the first.
    • Navigate to the Chart of Accounts window and follow the previous steps again.
    • Click on Save & Close.
  • Create an expense account and name it Depreciation Expense. Your depreciation expense will be tracked by this account.
    • On Chart of Accounts, right-click on the window and choose New from the drop-down.
    • Choose Expense and then provide all the required information.
    • Click on Save & Close.

Step 3. FAM Client Wizard

From the Accountant menu, choose Manage Fixed Asset and then run Fixed Asset Manager by selecting required option for option for your business.

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  • Create a new Fixed Asset Manager Client: This option can be very affective for you if you are using FAM for the first time.
  • Transfer a prior year Fixed Asset Manager client: With option, you can return to bring previous year’s assets into this year’s access.
  • Reconnect Accountant’s Review Copy with Fixed Asset Manager: This option allows you to take the current year assets in your QuickBooks company file.
  • Restore a current year QuickBooks Fixed Asset Manager Client file: This option allows you to restore a backup of Fixed Asset Manager. This backup is different from the one you created for your company file. A FAM backup can only be created done in the Fixed Asset Manager program.

The Fixed Asset Manager (FAM) Client Wizard

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

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Date: Fixed Asset Manager calculations and report depends on a particular period time. Insert the Current Year start and end dates that are creating financial statement. These dates are required to review the last year depreciation while entering an asset into FAM. You have the options to override these values from the client’s ongoing depreciation schedules.

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Basis: This screen provides you the option to select the tabs appear in the bottom half of the Asset screen.

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Methods: This option allows you to choose the default methods for the latest assets.

Note: You should select the settings that you are being usually used for your personal accounting practice.

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Synchronization (From/To): This window allows you to manage the movement of data between FAM and QuickBooks.

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Step 4. Add Asset In Fixed Asset Manager

The steps provided in this section are only valid when the fixed asset accounts are not set up in QuickBooks Desktop or when you want to send the information from FAM to QuickBooks. While setting up FAM for the first time, your company file will be included in the FAM automatically. The sync process will be done but it depends on the sync set up while selecting on your FAM.

  • Enter an asset to FAM:
    • From the toolbar, select Add.
    • Press the F4 key or click on Add Asset from the Asset menu.
  • Once the asset is added, you need to add information at the top such as description, federal form used to report depreciation, and general ledger accounts set up in QuickBooks.

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  • In the lower section of the screen, you will have to insert depreciation calculation such as cost, tax, system and method.

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Step 5. Asset Synchronization

Kinds of Synchronization in FAM

As it is already mentioned that the QuickBooks Desktop and FAM works on different files but, you can sync both the programs easily by using the Automatic or Manual methods.

Automatic Synchronization

  • From the FAM QuickBooks, open the Asset Synchronization Options.
  • From the QuickBooks tab, select Automatically when QuickBooks Fixed Asset Manager opens and Both new and modified fixed asset items.
  • Select OK and close the Fixed Asset Manager to refresh the changes you just created.

Manual Synchronization

  • From the FAM QuickBooks, open the Asset Synchronization Options.
  • From the QuickBooks tab, select Manually by selecting the “Update Assets from QuickBooks” option.
  • Go to QuickBooks tab and then select Manually by selecting “Save Assets to QuickBooks” from the QuickBooks menu.
  • Select OK and then close the Fixed Asset Manager to refresh the changes and create manual syncing.
  • Run the Fixed Asset Manager
  • From the FAM QuickBooks menu, choose Update Assets from QuickBooks or Save Assets to QuickBooks to start the sync.

Roles Each Program Plays In Entering And Tracking Assets

QuickBooks Fixed Asset Manager (FAM)

  • Asset information can be entered.
  • Depreciations can be calculated.
  • Journal entries can be performed.
  • You can generate multiple depreciation report/forms.

QuickBooks Desktop

  • You can enter Asset information
  • You can also generate customize reports depending upon your requirements.

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

Technical Support For QuickBooks Desktop

Hopefully, you find this article helpful and you are now able to set up Fixed Asset Manager by both, manually and automatic procedure. However, there can be some situations when you can face some issues as well because there are several errors associated with the Fixed Asset Manager. These errors generally occur while synchronizing FAM with QuickBooks Desktop. These errors can be very frustrating for you and they can even corrupt your QuickBooks as well. However, you don’t have to worry about as we can help you in such situations. You just need to dial our toll-free QuickBooks Support Phone Number +1888-382-7559 to get instant support for all your QuickBooks related issues.