HumanBookkeeping.com™ can help. We are expert bookkeepers that can help your small business with its bookkeeping needs. Here’s a short explanation of what Accumulated Depreciation means. If we can be of more help explaining what Accumulated Depreciation is or if we can help you with any of your small business bookkeeping needs, give us a call at 888-552-6657.
HumanBookkeeping.com™ provides a way for small businesses to have outsourced bookkeeping at a significant savings. We provide our clients with pre-printed envelopes. You stuff the envelopes and our expert team does the rest with detailed reports and timely compliance support. Not to mention, you now have a team of experts at your disposal should you have questions or last-minute needs. Let’s start with answering what Accumulated Depreciation means:
On the balance sheet, you may see the term Accumulated Depreciation.
For ease of record keeping and financial management, most accountants record the actual cost of an asset in an asset account, but they do not record the asset’s depreciation in the same account.
Instead, most accountants and bookkeepers will create a separate account, accumulated depreciation, which tracks the total lifetime amount of depreciation taken on the assets.
As a result, the book value of the asset is calculated by reducing the asset account by the accumulated depreciation account.
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