Why this matters
When you start your books in Ambrook, you probably already own trucks, tractors and buildings. Getting them on your balance sheet correctly takes two numbers for each asset:
What you originally paid (the cost basis)
How much the asset has depreciated so far (accumulated depreciation to date)
Ambrook shows the asset's current book value as the cost minus the accumulated depreciation. You never type in the current value directly, and for most assets Ambrook can calculate the depreciation for you.
Why cost basis instead of what it's worth today? Your balance sheet records assets at what you paid because that's the standard for bookkeeping. It's a fixed, documented number, and it's what your depreciation is calculated from. Your accountant starts from that same cost for tax purposes, though their depreciation may differ from what's in your books. Market values change constantly and are often an estimate, so using them would make your books harder to keep consistent from year to year.
Need to show what your assets are worth today? Lenders often ask for a market value balance sheet. Use the Market Value Report for that. Go to Settings > Exports, select Market Value Report, and enter today's value for each asset. Changing market values in the report doesn't change your books. For more, see Exportable Reports.
Step 1: Gather your asset details
For each asset, you'll need the original purchase price (cost basis) and the date you first started using it. The easiest source is your accountant's depreciation schedule (sometimes called an asset listing), which is often included in your copy of your tax return. If you can't find it, ask your accountant.
Step 2: Add each asset at its original cost
Go to Accounts and click New Account.
Choose the asset type: Vehicle, Equipment or Structure (or Land, which isn't depreciated).
Name the account, for example "001 - 2021 Ford F-250". Starting names with a number keeps related accounts together on your balance sheet.
Set the Starting Balance to the original purchase price, not what the asset is worth today.
Set the Starting Date to the date it was originally purchased.
If you're using Option A below, turn on Track Book Depreciation before saving.
Click Save.
Step 3: Enter the depreciation you've already claimed
Choose one option for each asset. Using both counts the depreciation twice.
| Option A: Ambrook depreciation schedule | Option B: Manual Accumulated Depreciation account |
Best for | Equipment, Vehicle, and Structure assets you'll keep depreciating. | Assets that are already fully depreciated, or if you'd rather post year-end entries yourself |
How past depreciation gets in | The Prior Depreciation option under Track Book Depreciation | The account's Starting Balance |
Future depreciation | Posted automatically | A year-end journal entry you create |
Full steps |
Option A in brief
When creating the asset account, turn on Track Book Depreciation.
Choose how to set up the schedule:
Calculate For Me (recommended): Choose a Method and enter Depreciate Over in years. Click the pencil next to "First put in use" and change the date to when you first started using the asset. Under Prior Depreciation, choose Post as a new entry. Ambrook calculates the depreciation from that date to today.
Enter Manually: Use this if you already have your own book depreciation schedule. Under Prior Depreciation, choose Enter an Amount and type the accumulated depreciation to date. Then fill in the Date and Amount fields. Salvage Value is optional.
Already have an Accumulated Depreciation account for this asset? Choose Move from an existing account (Calculate For Me) or Move an existing account (Enter Manually) so it isn't counted twice.
Click Save.
Heads up: Prior depreciation entered with Enter an Amount or Post as a new entry is recorded as one entry, dated the day you set up the schedule, in the Prior Period Adjustments category. It appears under Other Expenses on your Profit & Loss report for the current year, even though it reflects depreciation from earlier years. Keep that in mind when reviewing this year's results.
For every field, see Setting Up a Depreciation Schedule.
Option B in brief
Go to Accounts, click New Account, and choose Accumulated Depreciation. You can make one account for all your assets or one per asset. One account per asset makes it easier to remove the right amount when you sell or trade an asset.
Set the Starting Balance to the accumulated depreciation to date and the Starting Date to your books start date. Keep the Direction as Contra-Asset (Credit), the default.
Record future depreciation with a year-end journal entry.
For the journal entry steps, see Manually tracking Asset Depreciation in Ambrook.
Book vs. tax depreciation
Ambrook tracks book depreciation, which spreads an asset’s cost over the years you expect to use it. It gives you an accurate picture of profitability and a balance sheet you can take to your lender. Your accountant's schedule shows tax depreciation, which follows IRS rules. Some of those rules, like bonus and Section 179 depreciation, let you write off more of an asset’s cost up front.
The two won't match, and that's expected. Your accountant still prepares your tax depreciation. Ambrook's depreciation is for running your operation.
If your accountant asks you to keep tax depreciation in Ambrook instead, use Enter Manually (Option A) or Option B with the amounts from their schedule.
Worked examples
All examples assume you started your books in Ambrook on January 1, 2025.
Asset | Account type | Starting Balance (cost) | First put in use | Setup |
2021 Ford F-250 | Vehicle | $58,000 | March 2021 | Option A: Calculate For Me, Double Declining Balance, 7 years |
2015 machine shed | Structure | $120,000 | June 2015 | Option A: Calculate For Me, Straight Line, 25 years |
2008 John Deere tractor | Equipment | $185,000 | April 2008 | Option B: $185,000 accumulated depreciation (fully depreciated) |
Vehicle. Enter the truck at $58,000, including sales tax if it was part of the purchase price. Don't enter the $30,000 you think it would sell for today. Ambrook calculates the depreciation from March 2021 through today and posts it as prior depreciation.
Structure. Enter only the building at its $120,000 cost. If the land under it is also yours, add it as a separate Land account, because land isn't depreciated.
Equipment. The tractor has been in use longer than its useful life, so it's fully depreciated, with nothing left to depreciate. Enter it at $185,000 and record $185,000 in an Accumulated Depreciation account (Option B). It stays on your balance sheet at a $0 book value until you sell or trade it.
Useful lives and methods are examples only. Choose what fits how you actually use each asset.