Easy Tech TutsHow to Record Depreciation in QuickBooks Online, Learn How to Enter it Easily 2026
By Impran M N
Equipment, vehicles, and property lose value over time, and QuickBooks Online tracks that through a journal entry pairing your Depreciation Expense account with an Accumulated Depreciation contra-asset account. This guide walks through setting up those accounts and recording the adjustment, with an option to automate it monthly.
01Confirm your accounts exist
In the Chart of Accounts, verify you have both an Asset Cost parent account and an Accumulated Depreciation contra-asset account set up.
02Start a journal entry
Click + New, then Journal Entry under the Other column.
03Set the date and reference
Enter your reporting period and a unique reference number in the header.
04Enter the two balancing lines
Debit your Depreciation Expense account, then credit the matching amount to your Accumulated Depreciation account.
05Add a memo and automate if needed
Note it as a Monthly Depreciation Adjustment, then use Make Recurring if you want this posted automatically each month, and save.
Frequently asked questions
Why do I need two separate accounts for depreciation?
The Depreciation Expense account tracks the cost hitting your income statement, while Accumulated Depreciation reduces the asset's book value on the balance sheet without touching the original cost line.
Can I automate monthly depreciation entries?
Yes, the Make Recurring option turns the journal entry into a repeating template so you don't have to enter it by hand each month.
How do I check that my asset's book value is updating correctly?
Run a Balance Sheet report to see the current net book value after your accumulated depreciation postings.
What if I calculate the depreciation amount wrong?
You can edit or void a journal entry and re-enter it, though it's worth double-checking your straight-line calculation before posting.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
