This will mark the third post in our coverage of depreciation reporting and will address the elements of monthly depreciation expense journal entries. This type of reporting is important to many professionals as most companies will report their depreciation expense on monthly financial statements. There are 2 main reasons to account for monthly depreciation expense:
- To match expense to income
- To accurately represent the value of your assets in the balance sheet
A monthly depreciation expense report can generate the necessary journal entries for both accumulated depreciation (credit) and depreciation expense (debit) accounts. The processing will summarize all of the selected assets by general ledger code for a single accounting period.
The columns of this report should include:
- General Ledger Account
- Account Description
Here you can see what a version of this report will likely look like:
Some fixed asset software packages will offer a general ledger interface which can automate the monthly upload of the depreciation journal entries. When this option is not available, a depreciation expense journal entry report can be used to manually enter the information into your general ledger.
If you find the need for any help understanding these reports, please feel free to share any questions that you may have. You may do so either below in the comments section, or on the questions page.
More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.