Accumulated depreciation is the sum of an asset’s depreciation expense. It’s calculated from the start of its use to a specific date. It’s also a contra-asset account. That means it decreases the ...

As a business owner, you need to keep an up-to-date valuation of your business and its assets. One adjustment that you need to make every year is to account for the annual depreciation of your total ...

Over time, the assets a company owns lose value, which is known as depreciation. As the value of these assets declines over time, the depreciated amount is recorded as an expense on the balance sheet.

If your small business owns assets that are designed to last more than one year, you must depreciate them. That means you write off a portion of the value of the asset each year for several years. You ...