The next best option is to move the accumulated depreciation account to the operations section of the statement of cash flows. The total change in the accumulated depreciation will almost always equal your total depreciation expense for the period, so your statement should still be accurate.

Ken K.

I tried following your recommendation regarding removing accumulated depreciation and adding depreciation on the Cash Flow Statement setup in QuickBooks. QB says you can’t remove balance sheet accounts. Is there another workaround? I agree depreciation belongs in the operating section of the cash flow statement.

Thank you,

Rico Hernandez