Fixed Assets, Loans, Depreciation, and Journal Entries in Money Pro

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Money Pro can track many transactions, but fixed assets, loans, depreciation, amortization, and journal entries are advanced accounting topics. Do not guess at these entries. Ask your accountant whether a purchase should be expensed, capitalized as an asset, split between principal and interest, or adjusted through a journal entry.

When a Purchase Might Be a Fixed Asset

A fixed asset is usually a long-term business item such as equipment, furniture, computers, vehicles, machinery, or property. Some purchases can be expensed immediately, while others may need to be capitalized and depreciated over time.

Examples that may need accountant review:

Vehicle used for business
Computer or equipment
Machinery
Furniture
Building improvements
Property purchases
High-cost tools
Long-lived assets

Money Pro records the transaction, but your tax professional determines whether it belongs in an expense category or an asset account and how it affects taxes.

Loans Need Principal and Interest Treatment

Loan payments often include both principal and interest. Those are different for bookkeeping.

Principal reduces the loan balance or liability.
Interest is usually an expense.
Fees may be separate expenses or financing costs.

If you categorize the full loan payment as an expense, your books may overstate deductions. If you categorize none of it as interest, your P&L may understate expenses. Ask your lender for an amortization schedule and ask your accountant how to record the split.

Money Pro can help track the bank payment, but it does not automatically create a full loan amortization schedule.

Depreciation Usually Requires an Accountant

Depreciation is a non-cash accounting entry. No money leaves your bank account when depreciation is recorded, so it does not appear naturally as a synced bank transaction. That is why depreciation often requires a journal-entry-style adjustment.

Ask your accountant:

Whether the item should be depreciated.
What depreciation method applies.
What tax year the depreciation starts.
What amount to record.
Which asset and depreciation accounts to use.
Whether the entry should be made in Money Pro or only in the tax return.

Do not copy depreciation examples from the internet without professional review. The correct treatment depends on the asset, use, timing, and tax rules.

Journal Entries Are for Advanced Adjustments

Journal entries are used when a transaction is not simply money in or money out. They can adjust assets, liabilities, equity, revenue, or expenses without a normal bank transaction.

Examples:

Depreciation
Loan principal adjustments
Opening balances
Owner equity corrections
Asset purchases split across accounts
Year-end accountant adjustments

If your accountant gives you a journal entry, ask for the exact debit account, credit account, amount, date, and memo. Keep the accountant's instructions with your business records.

Frequently Asked Questions

Can Money Pro track fixed assets?

Money Pro can record the transaction, but fixed asset treatment requires accounting judgment. Ask your accountant whether the purchase should be expensed immediately or recorded as a fixed asset and depreciated.

Can Money Pro calculate depreciation for me?

Money Pro is not designed to replace depreciation software or accountant-managed fixed asset schedules. Depreciation often requires a journal-entry-style adjustment and should be calculated by your accountant or tax professional.

How should I record a loan payment?

Ask your lender for an amortization schedule and ask your accountant how to split the payment. Principal usually reduces a loan liability, while interest is usually an expense. Do not categorize the full payment as an expense unless your accountant tells you to.

What is a journal entry?

A journal entry is an accounting adjustment that moves amounts between accounts without relying on a normal bank transaction. It often uses debits and credits. If you are not comfortable with debits and credits, ask your accountant for exact instructions before entering one.

Should I use Other Business Expense for equipment?

Not automatically. Small tools or supplies may be expenses, but larger long-term equipment may need to be treated as an asset. Ask your accountant before categorizing high-cost or long-lived purchases.

What information should I send my accountant?

Send the receipt or bill, purchase date, amount, business-use percentage, financing documents if any, loan amortization schedule if applicable, and the Money Pro transaction details. Ask for the exact category or journal entry to record.

Still need help? If you still have questions, contact our support team.