| Assets of a company are either cash or non-cash. For | | | | the Asset Depreciation Schedule, the years, double |
| non-cash assets these are the equipments necessary | | | | declining depreciation or straight-line computation will |
| for use in the operations of the business. This includes | | | | then be filled out automatically. Some depreciation |
| vehicles, tables, chairs, computers and other intangible | | | | schedules bring out only the double declining balance |
| assets. They will depreciate in time and thus you have | | | | while others use only the straight-line computation. |
| to be prepared to replace them when necessary. | | | | The asset depreciation schedule from excel bring out |
| Depreciation is not only important in the replacement | | | | both to guide you properly. You do not have to show |
| factor of these equipments but depreciation is likewise | | | | both of this in your tax computation, choose only the |
| deducted when tax due comes in and thus it is always | | | | once that you think is more reasonable than the other. |
| necessary to monitor asset depreciation. In this, Excel | | | | Here is an example: |
| has a neat template which you can download if the | | | | You acquired an office desk. An office desk is an |
| issue of asset depreciation is an unknown word to | | | | asset which you will use for the operation of your |
| you. | | | | business. |
| This asset depreciation schedule will help you compute | | | | The value of the desk is $1000. The useful life based |
| for the depreciation of your assets and therefore | | | | on the IRS table is seven years. Set the salvage value |
| understand the cost of usage, time passage and | | | | to zero as this may be dilapidated already after seven |
| active life of your intangible asset. | | | | years. After you filled up the important details in the |
| The important details necessary to fill in the asset | | | | template, the columns for the depreciation schedule will |
| depreciation schedule will now be discussed, so you | | | | be automatically filled up.o Under the Years column |
| will appreciate the good this template will do for you. | | | | numbers 1 to 7 will automatically appear.o Under the |
| Initial cost of the asset | | | | Double Declining Balance, year 1 is $286, year 2 is |
| The initial cost of the asset is determined by how | | | | $204, year 3 is $146, down to the last year which is |
| much you acquired it. This amount will define the | | | | year 7, and the value left is only $38.o Under the |
| straight-line depreciation amount of your non-cash | | | | Straight-line computation, for all seven years $143 will |
| asset divided the number of years it is useful to you | | | | appear. This came from $1000 divided equally in seven |
| and your business. | | | | years. It appears therefore that the depreciation every |
| Salvage Value | | | | year is $143.o Another column in the template is the |
| The salvage value may be defined by estimating the | | | | Sum of Years digit and the last column is 150% |
| cost of the item after the usable life. Some assets | | | | declining depreciation. These are optional computations |
| may not have a salvage value while some would | | | | which you can use depending on the purpose of your |
| have. You will need to estimate this one so you will | | | | monitoring. |
| know the depreciation cost of your asset. | | | | By filling up this template, you will know how your |
| Useful Life in years | | | | assets are depreciating and thus you can use them as |
| IRS has a table where you will know how long the | | | | deduction in your taxes and in your finance books. You |
| usable life of a certain asset is. It encompasses all | | | | can also define how much asset is remaining every |
| assets whether for business or personal finance. | | | | year your asset is performing for you. |
| While you can check that out, you can also determine | | | | You will know when to replace and how you can |
| the useful life by checking with your supplier and | | | | replace your assets with the Asset Depreciation |
| considering the cost and durability of a certain asset. | | | | Schedule. |
| After you have filled up these three important details in | | | | |