Depreciation accounting is a way of expensing the cost of an asset over its useful lifetime. It’s not just a practical method of spreading out the costs associated with buying and maintaining an asset – it’s also a key part of the accounting process. Through depreciation, companies can accurately reflect their financial position on the balance sheet and effectively manage their income tax bill. By breaking down the cost of an asset into smaller, more manageable chunks, businesses can better plan for the future and keep their books in order.