fixed asset - how to account for additional (later) aquisition costs)?

Uta

Hi there, I am searching for a trick to add additional aquisition costs to a fixed asset. The only way I can see right now is to set up a seperate account for each asset so I can see the total aqu. costs. But this will surely blow up my chart of accounts in a couple of years... Any better ways to handle this problem? Running an extra excel sheet seems to be a bit backward.
Thanks a lot for your help

Kimpton

Hi Uta,
You should have a seperate account for each fixed asset, especially if they are large dollar amounts. At least you should have a seperate account for each type of asset. Along with an Accumulated Amortization contra account for each asset account.
As you build up the asset just add those amounts to the asset or type. You can make notes at the bottom of each transaction to keep track of what's going on.
You have to know that having a large fixed asset component on your balance sheet will take some extra work regardless of your platform or process.

Uta

Hi Kimpton,
Thanks a lot for your reply - I was worried that wuld be the only solution within wave. As long as I don't have many fixed assets it won't be too bad Fortunately low asset threshold has been increase for this FY to 5.000 NZD which helps a lot keeping fixed asset accounts low.
Cheers
Uta

Beautibookkeeping

Hi Uta - what I've done in the past is just set up a separate fixed asset account for the additional cost incurred on an asset (Bldg Imp 1, 2, etc) but I did leave the accumulated GL the same. Just didn't want to distort or skew my depreciation expense. This way if your fixed assets does continue to grow, it's easier to record the depreciation to each one based on placed in service date then to go inside of the GL to look up notes on that particular asset.

Hope that helped.
Happy Friday

Sophia