Depreciation Methods Accounting refers to the various techniques used by businesses to track, measure, and report the depreciation of assets over time. It is important for businesses to properly utilize these methods in order to accurately depict their financial position. In terms of accounting, depreciation is a non-cash expense which reduces a business’ profits as it records an asset aging over its useful life. The most common types of depreciation methods include straight line, double declining balance, sum of the digits, and units of production methods. Each of these methods has distinct advantages and disadvantages and it is important that businesses choose the appropriate one that best suits their needs.