How do you define depreciation? The original value of an asset changes over time and this change is often a reduction of its original value. What contributes its reduction in value? The common culprit is the natural wear and tear of the said asset, which could be due to how it is used and how long it it has been used. With that, we can define depreciation as the reduction or decrease in the value of a property and other assets over a period of time.
It is important to know about depreciation and the specific schedules when the value of certain assets depreciates, especially in businesses involved in asset trade. In this article, you will find 11 useful depreciation schedule samples and templates that you can download and use as reference while learning about depreciation and depreciation schedule. Feel free to check them out below!
Depreciation Schedule Template
Blank Depreciation Schedule Worksheet
Capital Asset Depreciation Schedule Template
Depreciation Schedule by Nonprofit Accounting Basics
Printable Fixed Assets Depreciation Schedule
Fixed Asset and Depreciation Schedule
Depreciation Schedule Template With Different Methods
What Is a Depreciation Schedule?
A depreciation schedule is a scheduling tool that is specifically created and used to keep track of one’s long term assets over a period of time. With this, the reduction in value or the depreciation of assets can be determined and monitored thoroughly. It is often presented as a chart or table where the depreciation expenses of a particular asset is calculated. The following are the details that are included in an a depreciation schedule:
- The specific description of the said asset
- The date when the said asses is purchased
- The price of the asses upon purchase
- The depreciation of the asset and the particular dates when their value depreciates
- The period of time the asset is going to be used or the expected life of the asset
- The determined value of the asset by the time it is going to be replaced or the salvage life of the asset
- The depreciation of the asset for the current year
- Cumulative depreciation
- The net book value
Using a scheduling is a great way to do things, and they are also easy to use and figure out. You may also want to check out other schedule related articles that we offer on our website, like Building Schedule Samples & Templates, Observation Schedule Templates, and Weekly Group Schedule Templates to name a few.
What Are the Different Methods of Depreciation?
There are four common methods used in calculating the depreciation value of a an asset and they are the straight-line method, the double declining balance method, the units of production method and the sum of years digits method. Let us take a closer look at each of these methods of depreciation so that we can learn to understand them better.
Straight-Line Depreciation Method
This method is known to be the most common and the simplest method used in determining the depreciation expense of a particular asset. This is because this type of depreciation method provides or uses the same expense amount every year throughout the life of the said asset. To get the depreciation expense in a straight-line calculation, the salvage value of the asset is subtracted from the actual purchase price of the asset, and then it is divided by the total number of years to which the asset will still be useful. See the formula below:
Depreciation Expense = Total Purchase Cost – Salvage Value / Span of time that the asset is useful
Double Declining Balance Depreciation Method
The double declining balance method is based on the fact that an asset is more useful and more productive while it is still new or while t is still used in its early years compared to how it functions or performs in its later years. With that being said, the method provides a depreciation expense that is twice as much that provided in the straight-line depreciation method. Use the formula below for double declining depreciation method:
Periodic Depreciation Expense = (2 / number of years the asset will be used) * (Total Purchase Cost – Accumulated Depreciation)
Units of Production Depreciation Method
This method of depreciation makes use of a fixed rate per unit of production. The formula for this depreciation method is provided below:
Depreciation Expense = Total PurchaseCost – Salvage Value / Estimated Total Units
Sum of Years Digits Depreciation Method
This method of depreciation is an accelerated method where a higher depreciation expense result is provided during the early years of the asset and a lower depreciation expense is provided or incurred in the latter years. To calculate the depreciation expense of an asset using the sum of years digits depreciation method, use the formula provided below:
Depreciation Expense = (The asset’s remaining life / Sum of the years digits) x (Purchase Cost– Salvage Value)
Those are the four depreciation methods that are used in calculating and determining the depreciation schedule of an asset. To learn more about schedules and other related topics, you may visit our website and check out the collection of articles we are offering. To name a few are Restaurant Schedule Templates, Staff Schedule Templates, and Construction Schedule Templates.
Fixed Asset Record With Depreciation
Depreciation Schedule Template for Straight Line Depreciation
Commercial Property Depreciation Schedule
Advantages of Using Depreciation Schedule Template
There are certain advantages of using depreciation schedule templates. To help you become familiar with these advantages, we have gathered them and put them in the list below.
- Depreciation schedule templates provide a quick an easy way for anyone to create and produce a reliable and useful depreciation schedule that can be used in business and other things.
- Through a depreciation schedule template, you are sure to be able to include all the necessary information that are need for a reliable tool. This is because the template already has the complete set of details listed in it so you are sure not to miss any important details.
- Depreciation schedule templates are available in different varieties online so you will never have a problem finding one when you need to. Of course, since you have a lot of choices, you will be able to find one that is exactly what you need or close to what you need.
- You can use the template as your own template for whatever purpose will serve you.
- A lot of these depreciation schedule templates are available for free download online.
- You can download them in different file formats such as PDF, Word and Excel.
- Depreciation schedule templates that are available in Excel format provides a very convenient way of doing the calculations for the depreciation expense as their cells can be programmed with the formula for the different methods. Just type in the data in the required fields and it will provide you with accurate results.
- The schedule templates are easy to use because we are already familiar with the applications they are created with.
- A depreciation schedule template helps in organizing and arranging entered in a way that it can be easily understood and read by anyone.
Those are the advantages that awaits you if you use a depreciation schedule template for your depreciation recording and calculation tasks. If you wish to learn more about schedule templates, then you might be interested in the article we offer, like Interview Schedule Templates, Orientation Schedule Samples & Templates, and Nursing Schedule Samples & Templates.
Tips For Creating and Using Effective Schedule Templates
Regardless of what type of schedule template it is that you are using or making, you will never get the best out of it unless you do the right things that will make it really effective. The schedule template does not work like magic. You need to work on it too so that you can get best results. It’s not that hard though. You just need to follow these simple tips.
- Make your schedule template as neat and as clean as possible. This will motivate you to work on it even more. Just imagine having to deal with tons of tasks or scheduled and a messy and topsy-turvy page? Trust me, you don’t want to check on it again.
- Make your handwriting legible. Think of how you can do what you have scheduled if you can’t even read it? If the schedule is a shared one, other people can better understand it with a neat handwriting.
- Provide enough space for you to write on additional notes or for you to be able to make changes.
- If you need to make changes, do so right away. Also make it a habit to update your schedule regularly because if you don’t, then everything will be a failure. What’s the point of scheduling if it is not updated.
- Follow your schedule according to what is plotted. This is very important and is one of the key things that should be done in order to be successful with scheduling and becoming organized.
- Provide specific instructions on how the schedule template should be used if you want uniformity in the output given to you by the people who use it. Add legends or assign a color code for everyone who uses it.
- When making a schedule template, it is best that you use readily available template either s your reference or as your own. You can make changes to it if it is not exactly what you need. By doing so you can ensure that the schedule you are creating is complete and reliable.
Those are just a few simple yet useful tips that you can use to help you create and utilize any schedule template effectively. If you try them you are sure to get good results. Other schedule templates available on our website are job schedules, leave schedules, and rehearsal schedules.
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