Fixed assets depreciation is the process of deducting the cost of a tangible asset from a company’s balance sheet. This is done over time – usually according to its expected useful life – in order to account for the gradual reduction in value that occurs due to wear and tear, obsolescence, or other factors. Depreciating fixed assets can help businesses maintain accurate financial records, maximize their tax incentives, and ensure they don’t overvalue an asset when it comes time to sell. In other words: fixed asset depreciation helps businesses stay ahead of the inevitable curve.