Depreciation Accounting for Fixed assets is usual activity and process for any accountant in his/her job, but things can get really tricky and difficult when there are numbers of assets and there are transactions like disposal, sale and purchase in mid-month/mid-year.
This course is designed to help you understand the concept of depreciation through practical situations and examples
It is very important to have a robust Fixed assets and depreciation model in place which calculates accurate depreciation monthly, helps you in budgeting and forecasting depreciation costs for next year (years to come). Also when there are assets sale/disposal you need to figure out exact profit or loss on such sale/disposal (especially when it takes place on old days in the month/year)
I will guide you through practical accounting issues and situations while accounting for depreciation, forecasting depreciation costs, impact of sale of an assets (profit and loss) on your profit and loss statement and Balance sheet
Depreciation model which I have prepared for the course is quite robust and takes care of any practical scenario in dealing with situations
At end of his course, you will have hands-on experience in dealing with any challenging depreciation and fixed assets accounting situation and its financial impact (which your manager would want to know accurately). You will also receipt free copy of the template used in the course !! So let's dive into it !
Introduction to the course and Instructor intro
You can download master depreciation model (Excel) with unprotection password here. Please note that VBA module password is also same.
You will have to unprotect sheets if you want to add new block/table of asset or delete block/table of assets in the model
Also for giving names to each block you will need unprotection
I highly recommend you protect entire sheet back once you are happy with modification before passing on to your colleague for use...
Attention: whenever you add new year sheet or add new rows (or use any of the three buttons), all sheets in the workbook will be again locked with same password....
Before using this model make sure to change your macro trust settings : Go to File >>> Options >>> Excel Options dialogue box will open >>>> Trust center >>> Trust center settings >>> Macro settings >>> Choose " Disable all macros with notification" and Click OK to exist !!
Definition of depreciation with sweet example :)
What are the key differences between terms depreciation and amortization? (definition of amortization)
Other terms related to term depreciation and these terms are quite important to know because they are crucial to depreciation accounting (covered in next section of the course)
In this lecture I will discuss various methods of depreciation (most common ones).
Journal entries and book keeping for depreciation (monthly and yearly), accounting (JE) in case of sale of an asset with profit or loss.
How depreciation is crucial while filing your annual tax returns, what is tax shield? Explained in detail with example
How different depreciation methods affect taxable Income.
I will explain you what is depreciation model is all about in depth. What each column does and how it is structured
Lets see how model works with practical examples!!
What are the advance features of the this model? for eg : adding next year sheet, adding and deleting rows within each block (table), how to add more assets block
Thank you so much for investing your valuation time in my course, I am sure you have learn something new (even if you are veteran finance/accounting professional), as I have mentioned in the course, I will be adding two more Models/templates with DB/WDV and DDB method in future!
Cheers and I will see you in my next course !
I am a seasoned Finance Professional (Chartered Accountant) with more than a decade of experience in the field of Finance, Accounting, Auditing and Operations having worked with many (diversified) industries throughout my career
I have hands-on and thorough practical knowledge and experience in routine accounting challenges that every accountant comes across (gained through tons of trials and errors with practical accounting issues faced and solved during my career)
Being an Excel enthusiast, I love report automation while keeping accuracy and reliability of any accounting or management report at 100%. I have automated and enhanced daily accounting reporting tasks and improved reporting styles which have saved tons of hours of work for my colleagues and organisations
I have substantial experience gained throughout my career to improve and automate reports using Microsoft Excel:
♦ Advanced Formulas and Functions
♦ Pivot tables
♦ Power Query
♦ Power Pivots
♦ What if analysis tools (Solver, Goal Seek, Data Tables and scenario manager)