When you operate a business you will have some assets that are of a certain value. However over time they go down in value and therefore become less valuable. Fortunately for business owners they can deduct a portion of the asset value each month and each year. By deducting the value, you will have a way to lower your tax liability and save money.
This can be one of the more beneficial tax deductions you can have available to you. With Excel you can use a number of templates to more accurately record depreciation. This includes fixed asset straight line and double declining balance. With these depreciation tables, a company will have the means to keep track of this deduction in a more organized manner.
Depreciation Calculator: Fixed Asset Straight Line
One of the tables that you can use in the Excel template is the fixed asset straight line depreciation table. This allows you to keep track of the declining value of things such as equipment, vehicles and machinery. On the template you will just put down information such as the type of asset, the lifespan of the asset and then the depreciated amount each month and each year. By using this table you will record deductions on a fixed amount which makes things less confusing and allows you to record deductions on an equal recurring basis.
Depreciation Calculator: Double Declining Balance
The next form of depreciation table is the double declining balance. This is when a business deducts a certain percentage each year of the asset life. During this time you will have a varying amount of money you deduct. The double declining balance method can allow you to increase your deduction in terms of depreciation in certain years. With an Excel template you will do something very similar to the straight line method in which you record the asset type, life, and then the amount you deduct each month and each year.
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