Blog - Introduction to tax depreciation and how the Asset Manager makes it easy to track

Tax depreciation is an important aspect of financial management and accounting for all organisations. Proper monitoring and application of tax depreciation can have a significant impact on your tax burden and cash flow. In this article, you will learn the basics of tax depreciation and how the Asset Manager application can make it easier to track and manage.

What is tax depreciation?

Tax depreciation is a system that allows organisations to spread the cost of acquiring fixed assets over several tax periods. This reduces the tax base and thus the tax burden on the organisation, while providing a more realistic picture of the profitability and costs associated with the assets.

How does tax depreciation work?

Tax depreciation is usually calculated as a percentage of the cost of the asset, which is deducted from its value each year. The amount of the percentage and the duration of depreciation may vary depending on the type of asset and the tax rules in the country. Some countries also allow the use of accelerated depreciation or bonus depreciation for certain types of assets or under certain conditions.

How does the Asset Manager make it easier to track tax depreciation?

• Customisability: the app allows you to set up depreciation according to your needs and tax rules, so you can easily track depreciation for different types of assets and depreciation methods.
• Integration with accounting: Asset Manager is designed to integrate easily with your accounting system, simplifying the depreciation process and ensuring proper accounting.
• Automatic calculations:The Asset Manager application automatically calculates depreciation for each period, eliminating manual calculation errors and saving time for accounting staff.
• Clear information display: a simple and clear interface makes it easy to get depreciation information for individual assets, making decision-making and planning easier.
• Depreciation history: the application keeps a depreciation history for each asset item, which simplifies the control and audit of accounting records.

Benefits of using Asset Manager to track tax depreciation

• Increased accuracy: Automated calculations and integration with the accounting system minimise the risk of errors when tracking depreciation.
• Time-saving: easy processing and tracking of depreciation saves time for accounting staff and allows them to focus on other important tasks.
• Improved planning: clear and up-to-date depreciation information facilitates budgeting and cash flow planning.
• Reducing the tax burden: proper monitoring of depreciation ensures that the organisation takes full advantage of available tax reliefs and reduces its overall tax burden.

Tax depreciation is an important part of financial management and accounting for organisations. Asset Manager offers a number of features that make it easy to track and manage tax depreciation, which improves accuracy, saves time and helps organisations reduce their tax burden. Investing in an application such as Asset Manager can provide significant benefits to your organization's efficiency and financial performance.