A type of expense which is actually can not ignore, and this is none other than depreciation. Depreciation Schedule Calculator Excel is now available which can download in single click. Specifically there are various methods available to calculate depreciation and templates are now available to give the choice to you which one you want to pick for your company assets!
Depreciation Schedule Calculator Excel
“Depreciation is something that you can get a deduction for in the current year even though you might not have spent money to buy it in that year. For instance, you bought a computer system in 2017 for $5,000. “(according to Jean Murray in his blog, how depreciation benefits your business published on thebalance.com)”.
In all honesty, some of the best methods adopted by companies to avoid the entire tax amount faced by them using depreciation. As explained above it is actually a method of substituting total cost of the asset over its useful life.
Components of Depreciation Schedule Template
If you are able to learn the format of the template, you are able to use it smartly. Go through the components of the template before downloading it:
This part of the template is further separated into various sections:
Enter the date when the asset actually become part of your company. enter the date.
Enter the name of the asset or list its description here. You need to enter the item along the acquired date. This may include, computer, furniture, telephone system, machinery or other. You can enter yours!
Enter cost of item
Start entering the cost of the item or asset which is listed in the previous column. Go through it twice as depreciation expense is actually dependent on this cost.
Enter the number of years which are actually the useful life of the asset. Enter the number here. It is dependent on the asset.
Start adding the cost of depreciation per year for the specific asset here. You need to use the formula of total cost of asset divided by its useful life. It is also the depreciation method which may change costs here.
Divide the depreciation cost per year with the 12 and you will be able to get the depreciation expense amount per month.
Total cost for each of the column is calculated and shows in the end. Don’t forget to go through the formulas once before you are using them for calculation basis. This expense amount can then be taken further!
Straight Line Depreciation Excel Example
- Purchase cost of $60,000 – estimated salvage value of $10,000 = Depreciable asset cost of $50,000
- 1 / 5-year useful life = 20% depreciation rate per year
- 20% depreciation rate x $50,000 depreciable asset cost = $10,000 annual depreciation