A depreciation schedule in Excel is a useful tool for tracking and managing the depreciation of fixed assets, such as property, plant, and equipment. It allows businesses to spread the cost of these assets over their useful life, reducing the impact on their financial statements in any given year.
Creating a depreciation schedule in Excel is relatively simple and straightforward. The first step is to gather the necessary information, which includes the asset's cost, salvage value, and estimated useful life. Once this information is gathered, the depreciation expense can be calculated using one of several methods, such as the straight-line method, declining balance method, or units-of-production method.