If the asset and accumulated depreciation account dropdowns show 'No matching options', what is the likely issue?

When the asset and accumulated depreciation account dropdowns show 'No matching options', the most probable issue is that fixed asset accounts have not been set up. In Xero, for the dropdowns to populate correctly, specific accounts must be established in the chart of accounts that correspond to the asset and its depreciation. If these accounts are missing, the software will have nothing to display in those dropdown menus, leading to the 'No matching options' message.

Setting up fixed asset accounts is crucial because Xero requires a structure to manage assets properly. This includes having accounts for both the asset's value and its accumulated depreciation to ensure accurate financial reporting and tracking. Without these accounts, the system cannot function as intended, making it impossible to categorize or manage fixed assets efficiently.