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Businesses in the US will also have to calculate depreciation based on the U.S. How do you calculate depreciation? Most enterprises follow the guidelines formulated by the Generally Accepted Accounting Principles (GAAP).Who does depreciation affect? Depreciation will affect any IT professional charged with acquiring, configuring, deploying, maintaining, and eventually replacing hardware, fixtures, vehicles, and other assets.
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Why does depreciation matter? Depreciation allows businesses to express the results of their financial transactions more fairly and accurately.What is depreciation? In business, depreciation measures how much and how fast an asset loses value.SEE: All of the TechRepublic cheat sheets and smart person’s guides Executive summary
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This cheat sheet explains what computer hardware depreciation is, how it works, and how to apply it in your business. How else are you going to know when it is time to purchase new equipment? After all, depreciation is a foundational concept in tracking financing and accounting business transactions.Įvery department, regardless of size, needs to employ and account for depreciation, particularly if that department manages assets such as laptops, servers, or production machinery. It is vital to the success of enterprises that employees understand the basic idea of depreciation.