Page Comparison

Asset type

Scenarios to use asset accounts

Loan notes you hold/Money lent

Set up an asset account to track the money you've lent. When you receive a payment/installment and deposit it in your bank account as you normally would, ensure that you create a transfer to the asset account. This is important to track the principal amount paid and will help you to know the balance amount that is still owed to you.

Home cost basis

Many types of home improvements add to the cost basis of your home. Set up an asset account to track your home improvements over the years. Use the purchase price of the home as the opening balance for the account, and then record each improvement in the register as you make it. You can do this by creating a transfer from the account you paid the amount.

Contents of your home/Home assets

Create an asset account for your home inventory and use it to track furnishings, major appliances, electronics, jewelry, and other property you keep in your home. Enter each item with its purchase date and price as a transaction in the asset account. If your property is damaged or stolen, your records can help to settle your insurance claim.

Prepaid medical or dependent care expenses

If you set aside pre-tax dollars for medical or dependent care expenses, you can use an asset account as a holding account to track the money withheld from your paycheck. Use a split transaction and transfer part of your paycheck to this asset account.

Capital equipment

Track the value of capital equipment as it is acquired and track depreciation as it occurs.

Accounts receivable

Keep up-to-date accounts receivable records.