If you need to plan monthly depreciation for next year, then a twelve month view of your data is the best option. Here is a post we did last year on planning your monthly costs for next year:
If you need to plan further out into the future, then a five year projection is a better solution. A five year projection report is based upon the current accounting year and forward. As with the twelve month view that provides monthly depreciation, the five year projection report details annual depreciation and is used primarily for budgeting purposes. Below is a sample report:
The typical columns of this report include:
- Unique asset identifier
- Service Date
- Depreciation Method
- Estimated Life
- Cost Basis
- Accumulated Depreciation As Of the end of the current tax year
- The current year plus 1
- The current year plus 2
- The current year plus 3
- The current year plus 4
- The current year plus 5
- Total Depreciation – accumulated depreciation plus the annual depreciation for each of the five future years
This report can be run in a summary format by asset type, class or other grouping. Additionally you can generate a detail display for each individual asset. The five year projection report will estimate future depreciation based upon your existing assets. To add to the projections, budget assets can be established to account for anticipated purchases. You can then see the projected annual depreciation for each year with a cumulative total. The five year projection report is a valuable budgeting tool for both the tax and financial depreciation schedules.
Questions or comments about this post? We invite you to respond in the space below.
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.