A depreciation schedule is a table that helps businesses keep track of the depreciation of the expense of each of their fixed assets over the years. It outlines how a fixed assets costs are expensed over its useful life, which is the expected amount of time the asset will generate revenue and be of use to the business. The schedule calculates an assets depreciation expenses based on the date of purchase, initial cost, useful life, and tracks beginning and ending accumulated depreciation, or the value of the assets when it is replaced. The point of having a depreciation schedule is to give businesses the ability to track what depreciation theyve already recognized and stay on top of their finances.

Typically, depreciation schedules include the following information:

• Description of asset
• Date of purchase
• Cost
• Expected life
• Method of depreciation
• Salvage value

There are different methods for calculating depreciation, such as straight-line vs. reducing-balance depreciation. A depreciation schedule charts the loss in value of an asset over the period designated as its useful life, using the accounting method chosen. The schedule will list the different classes of assets, the type of depreciation method they use, and the cumulative depreciation they’ve incurred at various points in time.

Businesses use depreciation schedules to report asset use to their stakeholders and to bring down the historical value of assets. Sole proprietorships and single-member LLCs deduct depreciation when they fill out Schedule C on Form 1040. Depreciation schedules should be made in a spreadsheet, with each asset having its own schedule that can be aggregated onto another schedule that gives a glance at all the depreciable assets.