Depreciation
Depreciation is an accounting method used to systematically allocate the cost of a tangible asset, such as machinery or buildings, over its estimated useful life. This non-cash expense is vital for accurately reflecting the gradual wear and tear of assets and matching their cost with the revenues they help generate. Properly managing depreciation impacts a business's reported profitability, asset valuation for financial statements, and is a key consideration for tax planning and compliance.
Translations
| Language | Code | Translation |
|---|---|---|
| English | en | Depreciation |
Related Terms
Accumulated depreciation · Depreciation expense · Straight-line depreciation
Use Frihet to manage your business
Frihet is an AI-native ERP handling invoicing, expenses, taxes, and compliance — in 10+ languages. Start free →