Depreciation is a calculation used to reduce the value of a fixed asset over a period of multiple years. Many small-business owners find this concept confusing because depreciation does not match cash flow. Instead, it is a calculation made and an entry recorded into the bookkeeping on a recurring basis. Fixed assets lose their usefulness…

Billie Anne Grigg writes for NerdWallet. Email:

The article What Is Depreciation? originally appeared on NerdWallet.

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