Depreciation Schedule Template
The charge for the period, asset by asset, with opening and closing values.
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For the period [date] to [date].
| Asset | Cost | Opening value | Charge for the period | Closing value |
|---|---|---|---|---|
| [add one asset per line] |
The charge for the period is the difference between accumulated depreciation at the two dates, so a part-year is handled correctly for assets bought part-way through.
What is a Depreciation Schedule?
A depreciation schedule lists every fixed asset you own, what it cost, how it is being written down and what it is worth now. It produces the depreciation charge that goes into the profit and loss account and the net book value that goes on the balance sheet. Without one, the accounts carry assets at cost forever, profit is overstated, and nobody can say which van, laptop or machine the charge relates to.
Anyone who capitalises assets keeps one: a sole trader with a van and a laptop, a restaurant with kitchen equipment and a fit-out, a manufacturer with machinery, a landlord with white goods in a furnished let. Bookkeepers build it at set-up and add a row every time something is bought; accountants use it at the year end to post the charge and to prepare the fixed asset note. It is also the first document a buyer, lender or insurer asks for when they want to know what the business physically owns.
Depreciation for the accounts and the deduction you may claim for tax are two different calculations in most systems, and you must not assume one answers the other. In the UK, capital allowances replace book depreciation in the tax computation; in the US, MACRS lives alongside book methods and Section 179 changes the picture again; India uses prescribed rates under the Companies Act for accounts and different rates under the Income Tax Act; Canada uses CCA classes; Australia uses effective life rules. Check the current rule that applies to you before you rely on any figure.
The schedule records a decision; it does not make it. Useful life and residual value are estimates you or your accountant must justify, and the sheet will happily depreciate a building over three years if you tell it to. It is not an asset register for insurance either — that needs serial numbers, locations and replacement cost, which are different fields. And it is not a tax return: the charge here almost never equals the deduction you claim, so do not copy the total across without checking.
What to put in a Depreciation Schedule
These are the details this template asks for. Anything left blank is marked in red on the preview so you can see what is still missing.
| Field | What goes in it |
|---|---|
| Business name | For example: Barton Supply Co. |
| Your address | For example: Unit 7, Barton Road, Columbus, OH 43212 |
| Period from | Free text |
| Period to | Free text |
| Assets | One per line: Asset | Tag | Purchased | Cost | Life (yrs) | Method |
How to write a Depreciation Schedule
Give every asset a unique row
One line per asset, not per invoice. If a single invoice bought four monitors that will be scrapped at different times, list them separately or as a clearly labelled group with a count. Record an asset number, the description, the supplier, the invoice date and the date it was first brought into use — the second date, not the first, usually starts the clock.
Record cost the way the rules define it
Cost is the purchase price plus what it took to get the asset working: delivery, installation, site preparation, professional fees on a property. It excludes recoverable VAT or GST where you can reclaim it, and it excludes running costs, training and an extended warranty. A machine at £40,000 with £3,000 of rigging and a £2,000 five-year service plan is capitalised at £43,000.
Set the method, life and residual value
Straight line spreads cost evenly and suits fixtures, fit-outs and office equipment. Reducing balance takes more in the early years and suits vehicles and IT that lose value fast. Write the chosen method, the estimated useful life in years or the percentage rate, and the residual value you expect to recover on disposal. A van with an expected £4,000 trade-in depreciates £4,000 less than its cost.
Calculate the charge for the period
For each asset show the opening cost, accumulated depreciation brought forward, the charge for this period, accumulated depreciation carried forward, and the closing net book value. Pro-rate the first period for assets bought part way through the year if that is your policy, and state the policy on the sheet. Stop charging once net book value reaches residual value; a fully written down asset stays listed, not below.
Handle additions and disposals in-year
Add new purchases with their in-use date. For disposals, remove both cost and accumulated depreciation, compare sale proceeds with net book value and record the profit or loss on disposal as a separate line. Scrapping an asset with £900 of net book value left produces a £900 loss that must reach the profit and loss account, not vanish quietly out of the schedule.
Common mistakes
- Capitalising a repair that merely restores an asset to working order overstates both profit and the balance sheet, and understates this year's expenses.
- Leaving disposed assets on the schedule keeps charging depreciation on equipment that has already been sold, so the fixed asset note will not agree to anything.
- Depreciating land along with the building it sits on is a common error, because land is not normally depreciated and the charge cannot be justified.
- Using tax rates as accounting rates because they are easier produces a book charge nobody can defend and a deferred tax position nobody has calculated.
- Forgetting to start depreciation from the date the asset was brought into use, rather than the invoice date, quietly shifts a month or more of charge into the wrong year.
Frequently asked questions
What is the difference between depreciation and amortisation?
Depreciation applies to tangible fixed assets — vehicles, machinery, fittings, computers. Amortisation is the same idea applied to intangibles such as software licences, patents, or goodwill where your framework permits it. The mechanics are identical: cost, life, method, accumulated total, carrying value. Many schedules keep both on one sheet with a column marking which is which, so the totals can still be split for the accounts.
Straight line or reducing balance — which should I use?
Match the pattern to how the asset actually gives up its value. Office furniture used evenly for ten years suits straight line. A van worth far less after year one suits reducing balance. Consistency matters more than the choice: pick a policy per asset class, apply it to everything in that class, and do not switch method to flatter a year's results without a reason you can explain.
Do I need a depreciation schedule if I am a sole trader?
If you claim any deduction for equipment or vehicles, you need a record of what you bought, when and for how much, and how the claim was calculated. Whether the accounts carry a depreciation charge or the tax rules use a capital allowance mechanism instead depends on where you file — check with your tax authority or accountant. Either way, the schedule is the working paper behind the number.
What counts as a fixed asset rather than an expense?
Two tests: the item is used in the business for more than one accounting period, and it costs more than your capitalisation threshold. The threshold is a policy you set — many small businesses use a round figure and apply it consistently. A £30 stapler is an expense whatever the policy says. A £3,000 laptop fleet is not, and treating it as one distorts a single month.
When does depreciation start and stop?
It normally starts when the asset is available for use, which can be later than the invoice date if the machine sat in a crate for six weeks. It stops at the earlier of disposal and the point where net book value has reached the estimated residual value. An asset still being used after it is fully depreciated stays on the schedule at its residual value with no further charge.
This page explains general practice and is not legal advice. Requirements differ between countries and, in some cases, between states — check what applies where the document will be used.