A depreciation schedule is a financial record used to track the expense associated with the depreciation of assets over time. It lists details such as the asset name, its purchase date, initial cost, and the depreciation method applied. Depreciation schedules are helpful for businesses to align their financial statements, such as the Profit and Loss Statement and the Balance Sheet, by reflecting the gradual reduction in asset value over its lifespan. They also support compliance during month-end and year-end closings by providing accurate depreciation values to record as expenses in the financial period.

For example, if a company purchased a piece of machinery for $10,000 that is expected to last 10 years, the depreciation schedule would reflect $1,000 per year (assuming a straight-line depreciation method) along with other relevant details. This helps the finance team ensure consistency and allows for informed decision-making regarding capital expenses (Capex). Additionally, tools like Easy Month End can assist in keeping depreciation schedules updated and integrated.