Zoho Books divides assets into three main sub-types. Current Assets are resources expected to convert to cash within 12 months: bank balances, accounts receivable, advance payments, and inventory. Fixed Assets are long-term physical resources such as machinery, computers, and vehicles. Other Assets cover items like long-term deposits or intangible assets.
For Indian businesses, common current asset accounts include GST Input Credit Receivable (split into CGST, SGST, and IGST sub-accounts) and TDS Receivable for tax deducted by customers before remitting payment.
When you purchase a fixed asset, you debit the fixed asset account and credit either your bank or a liability account if financed. Over time, you reduce the asset’s book value through depreciation journal entries that debit a depreciation expense account and credit accumulated depreciation. Zoho Books does not run depreciation automatically, so you post these entries manually each period or use a recurring journal entry.
All asset accounts roll up to the Assets section of the Zoho Books Balance Sheet report. The report shows current assets first, then fixed assets, then other assets, with a total that must equal the sum of liabilities and equity. Monitoring asset balances regularly helps you spot unreconciled advances, stale receivables, or unexpectedly large cash positions.
An asset in Zoho Books is any resource owned or controlled by your business that is expected to produce future economic benefit, classified on the Balance Sheet as a current asset, fixed asset, or other asset.
Create an account in the Chart of Accounts with type Asset and the appropriate sub-type. Then post the purchase transaction to that account through a journal entry, vendor bill, or bank transaction.
Aaxonix is a certified Zoho implementation partner based in Pune. Architecture-first, no surprises.