Balance sheet amortization is the process of spreading out the costs associated with an asset over a period of time in order to match revenue with expense on the income statement. This means that, instead of recording the entire cost for an asset as an expense in a single period, it can be spread out and recorded as an expense over several periods. This helps create clearer balance sheets and income statements, allowing companies to better track their financial performance. Amortization also allows companies to recognize the long-term value of an asset, rather than just its upfront cost.