Recent Articles

Forms of Depreciation

Depreciation has three forms: the first and most common is time based depreciation, the second is a utilization form which is most commonly found in large engineered equipment, and the third is tax based depreciation.

Accelerated Depreciation – An Explanation

12/17/2013

When it comes to depreciation, no two businesses are alike. Unlike traditional straight line depreciation where the asset value is cost out to depreciation expense in equal increments over a given life expectancy, accelerated depreciation expenses [...]

Internal Revenue Service (IRS) Definition of an Expense

04/03/2013

The Internal Revenue Service defines a business expense as ‘ordinary’ and ‘necessary’.  Ordinary expenses are those costs typically incurred in your industry.  So a restaurant would not ordinarily purchase vaccines.  And a medical [...]

The Various Forms of Depreciation

02/22/2013

There are various forms of depreciation used in the small business world.  In general, depreciation is not required but it is advisable.  So a small business owner should understand depreciation and the various forms of how to calculate the [...]