Creating a lease account

[pikk67]

Hi,

I am new to QB's and use Contractors Edition 2009. I have a small construction company and need to start adding accounts to QB's. The first of these and the one I am having trouble with is setting up accounts for my two leased vehicles. I have tried a few different methods but something is not right. Can anyone suggest a simple way to add these? I'm assuming I would use long term liabilities to do this. I also want to show paymnets to these monthly. I have to keep in mind that I am going to start using my software as of June 1st. The leases I have are older...appx 2 years. I need to enter the info starting Jan 09 up to June 1st...as requested by my accountant.

Any help or suggestions would be appreciated.

Thanks in advance.

Mike

[lisa_mn]

Talk to your accountant about whether the lease needs to be set up as a liability. If it's a straight - "use the car for 3 years and give it back with no buy out option", then you may be able to just use an expense account and not track the liability.

To set up the lease as a liability, you would also need to set up the vehicles as assets and track depreciation and such. Talk to your accountant.

Your accountant should also be able to provide you with opening balances as of 12/31/08