What is Depreciation ? - a podcast by BPA Educators

Depreciation is the #process of deducting the total cost of something #expensive you bought for your business. But instead of doing it all in one tax year, you write off parts of it over time. When you depreciate assets, you can plan how much money is written off each year, giving you more control over your finances.  

The number of years over which you #depreciate something is determined by its useful life (e.g., a laptop is useful for about five years). For tax depreciation, different #assets are sorted into different classes, and each class has its own useful life. If your business uses a different method of depreciation for your #financial #statements, you can decide on the asset’s useful life based on how long you expect to use the asset in your business.

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