Amortization expenses are the gradual reduction of an asset or liability through periodic payments. It’s a form of accounting for intangible assets such as patents, copyrights, and goodwill. Through amortization, companies recoup their investments in tangible and non-tangible assets over an extended period of time. While it is often associated with large corporate investments, amortization applies to both businesses large and small alike. As a business owner, understanding how amortization works can help you wisely manage your own finances and ensure long-term sustainability.