BusinessAccountings

  If your business purchases machinery and equipment that's used for several years, you would like to track depreciation expenses within QuickBooks. What is Depreciation? Depreciation enables you to display the value of a costly asset over time. For instance, a dentist buys specific machinery for an important expense. This has used over five years to depreciate the price of that purchase monthly over that entire five-year period. Spreading out the value of an oversized expense over the life of that asset is significant to create sure that your bookkeeping records properly accommodate that expense. If you were to log that expense when the purchase has been made. This might significantly impact your accounting records and should even have negative tax and legal consequences for your business. Depreciation and accumulated depreciation Depreciation has that the decline within the value of a physical asset while accumulated depreciation is that the cumulative depreciation of an asset up