How often is depreciation calculated?
How often are you meant to run depreciation? At the end of every financial year or at the end of every month? What is the best practice?
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Accounting
You should run depreciation once a year when doing the annual financial accounts (Profit & Loss and Balance Sheet). The other time I run depreciation for clients is after completing the March BAS each year when doing 9 months financial accounts for pre end of year tax planning for my small business client. Running depreciation after the March BAS can give you a better picture of the pre tax profits of your business to assist in tax planning.
