How to Record Depreciation in QuickBooks Online (2026 Tutorial)

How to Record Depreciation in QuickBooks Online (2026 Tutorial) Recording depreciation in QuickBooks Online ensures your fixed assets are properly expensed over time and your financial statements reflect accurate asset values. Tracking depreciation helps maintain compliance with accounting standards and provides a clear picture of your business’s true profitability. This 2026 step-by-step tutorial will guide you on how to record depreciation correctly in QuickBooks Online. Steps to record depreciation in QuickBooks Online: – Log in to your QuickBooks Online account – Go to + New → Journal Entry – Enter the Depreciation Date (usually end of month or year) On the Debit line: – Select Depreciation Expense (create the account if it doesn’t exist) – Enter the depreciation amount On the Credit line: – Select Accumulated Depreciation (a contra-asset account linked to the specific fixed asset) – Enter the same amount – Add a memo describing the asset and period (e.g., “Monthly depreciation – Equipment”) – Click Save and Close If accounts don’t exist: – Go to Accounting → Chart of Accounts → New – Create an Expense account for Depreciation Expense – Create an Other Asset (Contra Asset) account for Accumulated Depreciation Important Notes: – Do not reduce the original fixed asset account directly. – Consult your accountant for the correct depreciation method and amount. – Review your Balance Sheet and Profit & Loss after recording the entry. Recording depreciation in QuickBooks Online in 2026 helps maintain accurate asset values, ensures proper expense matching, keeps financial reports compliant, and supports clean and organized bookkeeping.