What is Depreciation?
Depreciation is the systematic reduction of an asset’s book value over its useful life.
In depth
Depreciation spreads the cost of a fixed asset across the years it is in service, so financial statements reflect its declining value rather than expensing it all at once.
Asetavo supports multiple methods — straight-line, declining balance, MACRS and more — and generates schedules per asset for both book and tax purposes.
Related terms
See how Asetavo does depreciation
Explore Depreciation →FAQ
Straight-line is the most common for book purposes; tax rules often require methods like MACRS or declining balance.