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: email@example.com.
The article What Is Depreciation? originally appeared on NerdWallet.