Fixed assets and loans
Books > Assets holds the gear your business owns, what it cost and what it is worth on your books, and the loans you pay down. It is part of Books in double-entry.
Put gear on the register
Press Add asset and say how it was acquired:
- From a bank transaction: choose the purchase in Books. Your books then hold it as equipment instead of an expense.
- From a bill: a bill line booked to Equipment.
- Entered by hand: the cost and the account the money came from: the bank or card, a loan, or owner contributions if you paid yourself.
- Owned before the books started: gear the business already had, entered against opening balance equity.
Then fill in the Placed in service date, the Cost and an optional Salvage value, and pick the Depreciation method:
| Method | What it does |
|---|---|
| Straight line | Spreads the cost evenly over the useful life, in months (five years is 60) |
| Bonus depreciation (all at once) | Expenses the whole cost in the month it goes into service |
| No depreciation | Keeps it at cost |
One purchase that covered several items can be split into assets of their own. From Gear, an item can be added to the register or linked to an entry.
Depreciation
Each month is posted to your books once it is over, as one entry. The Depreciation schedule shows the months posted and the months still to come. A month already inside a closed period never changes.
This is book depreciation for your own statements. It does not change the Taxes screens or your tax return, and the Taxes screens keep their own asset list. Ask your accountant which method to use.
Sell or scrap something
Dispose of asset takes it off the books: enter the date, what you sold it for and where the money landed, and Cutvey works out the gain or loss. Undo disposal puts it back.
Loans
Press Add loan and enter the lender, the amount, the yearly interest rate, the start date and the term in months. Leave the monthly payment empty and Cutvey works out the level payment. Choose where the money landed, or An existing loan for one the business already had.
Cutvey builds the payment schedule. When a payment shows up as a bank transaction in Books, record it on the loan, and Cutvey splits it into principal and interest from the balance on that day. The balance is always what your books say, so an extra payment shows at once.
What it does not do
The register is a record, not tax advice and not an appraisal. Cutvey does not file anything or choose an election for you.
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