Depreciation Entry Journal is a type of bookkeeping entry used to record the gradual decrease in an asset’s value over the course of its useful life. By tracking depreciation expenses, businesses can accurately plan and budget for their assets’ expected costs, which helps them allocate resources more effectively and make informed decisions about their investments. Depreciation accounting entries may also be classified as a non-cash expense (or deferred expense), as they do not involve any physical cash outflow. In addition, these entries are tracked on a regular basis so that the accumulated amount of depreciation can be reported on a company’s financial statements.