Depreciation in QuickBooks Online—Explained for Business Owners

Confused about the difference between Depreciation Expense and Accumulated Depreciation in QuickBooks Online? In this video, I explain both accounts in plain language and show how they affect your Profit and Loss Statement, Balance Sheet, and the net book value of a fixed asset. Using examples of a pickleball machine and LED court lights, you’ll learn: • Why a fixed asset remains recorded at its original cost • Where Depreciation Expense appears in your financial statements • Where Accumulated Depreciation appears • The difference between annual depreciation and cumulative depreciation • How to calculate an asset’s net book value • Why a zero book value does not necessarily mean an asset is worthless This video focuses on understanding the accounting concepts rather than demonstrating the steps inside QuickBooks Online. 👉 Ready to hand off your bookkeeping? We provide professional QuickBooks Online bookkeeping for business owners who are ready to focus on running their business. Schedule a Consultation: https://seatonbks.com/consultation-call 👉 Prefer to manage your books yourself? Start with our Introduction to Accounting & Bookkeeping course for step-by-step training: https://seatonbks.com/bookkeeping-tra... 📌 On this channel, you’ll find: • In-depth QuickBooks Online tutorials • Practical bookkeeping guidance • Clear accounting explanations 🌐 Learn more: https://seatonbks.com Timestamps: 00:00 - What Depreciation Means 00:14 - Accounting Depreciation Explained 00:22 - Pickleball Machine Example 00:43 - How Depreciation Affects Book Value 01:03 - Depreciation Expense vs. Accumulated Depreciation 01:40 - Recording the Depreciation Journal Entry 01:50 - Calculating Net Book Value 02:20 - Multi-Year Depreciation Example 02:43 - Calculating Annual Depreciation 03:00 - First-Year Depreciation 03:27 - Second-Year Depreciation 03:49 - Understanding the Two Accounts 04:08 - Before Recording Depreciation in QuickBooks Online #bookkeeping #quickbooksonline #smallbusinessaccounting