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If your business relies on fixed assets, such as office space, machinery, IT equipment, and other tools, you will need to know how to depreciate your assets. After all, no matter what you do, the value of your assets decreases over time and usage.
According to Investopedia, depreciation refers to an accounting method used to allocate the cost of a tangible or physical asset over its useful life or life expectancy. Depreciation represents how much of an asset's value has been used.
Depreciating all the assets in your business is not always the best idea. Assets that are only temporarily in your business shouldn't be depreciated. Assets of lower value can also be avoided, although they should still be tracked using an asset management software.
Once you've decided on which of your assets that you would like to calculate depreciation for, you can perform the following steps:
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