Our small business accountants in Melbourne explain depreciation
Most small business owners today will know that some form of depreciation affects their assets, but most people don’t know how it actually works. Our small business accountants in Melbourne will explain how depreciation works.
Depreciation is a non-cash expense that reduces the value of your assets over time. Since it’s non-cash, depreciation is merely taken as an accounting entry and will not affect the business’s money or earnings for that time period. Some assets that depreciate over time include equipment, furniture, vehicles, technology etc. and often will occur due to time passing, which causes the asset itself to lose value. If you’re looking for someone to help with calculating your assets depreciation, keep in mind that our small business accountants in Melbourne are experts in the field.
One of the biggest factors of depreciation is your asset becoming obsolete and is no longer needed, which is then replaced by a newer model.
Feel free to contact our small business accountant in Melbourne regarding your business’ assets and we will determine their depreciation for you.