Depreciation Schedule | How to Calculate & Link into 3 Financial Statements

[@eric_andrews]

Questions? Let me know in the comments happy to discuss. 🚀 Also, if you want to learn how to systematically scale your startup without ending up as one of the 90% of startups that fail, have a look at this ⇒ www.ericandrewsstartups.com/financeforstartups

[@TucsonArizona]

Love this video! What an important topic, that not many people talk about or understand at all. I love using Excel for my financial planning; such an easy program to use. You give some great Excel tips for calculations here too! Please keep these videos coming!

[@eric_andrews]

Will do! Excel is a powerful tool, but many people never really learn how to use it. 100% agree thanks for your thoughts!

[@pegasustravels3182]

Thanks!

[@eric_andrews]

Sure thing!

[@heathersteel-wiesenberger4389]

Thank you for this! Extremely helpful.

[@eric_andrews]

You're welcome!

[@happyman5323]

Thank you for your Explain in Depreciation & Accumulative Depreciation in different usage in 3 Statements. Awesome.

[@eric_andrews]

My pleasure, cheers happy man!

[@jamesperry3837]

Hi! Thanks for the nice video. Was able to do likewise with different numbers, turning my Excel sheet into a template. God bless!

[@richardgrass1382]

Very good and easy to follow.❤

[@eric_andrews]

🙌

[@NeelamKumari-yo9fh]

Eric you are amazing 😊 your each video has taught me alot , looking forward to get some clarity on topics like LBO Model, M&A Model , Budget Model in detail, these are few suggestions from my side..keep up the good word 🙌

[@eric_andrews]

Hey Neelam - really appreciate the nice words, I'm so glad the video was helpful! Ok - I will make sure to include some of those subjects this year thanks for letting me know what you want to see. Cheers!!

[@Linux4Ever2011]

Thank you for such beneficial information, and for sharing the template.

[@eric_andrews]

You are so welcome!

[@modeinterdite]

Hello and thank for the video, why the depreciation isn’t a negative number in the income statement?

[@eric_andrews]

Because it is an expense, so all expenses are subtracted from the revenue and shown as "positive" numbers, which are then subtracted

[@yashcbskukreja2829]

Hi Eric That's amazing. Can you please tell how we can get the useful years of machine?

[@eric_andrews]

Hey, thanks! There are accounting rules that you have to follow. Check what the useful life is according to IFRS (or maybe ask chat gpt), I'm guessing it will be around ~5 years.

[@johnhoangtrongvu4682]

Hi Eric, Thanks for making this! However, this seems to be a manual way to create a depreciation schedule. Could you please make a video on how we could make a depreciation schedule that would pull the data from the CAPEX schedule, and fill in the depreciation schedule automatically? so that every cell is filled with a formula, but shows 0 - if depreciation has not occurred yet (and ends when the asset lifetimes has expired).

[@johnhoangtrongvu4682]

Right now, you will have to manually extend the formula in the depreciation schedule, for the amount of time you use the asset. Can you not create a formula in which you use the lifetime you fill in to automatically fill in the depreciation schedule?

[@eric_andrews]

Hey John - appreciate you thinking about this and thanks for the comment. Yes for this simple depreciation schedule in my video I thought it would be faster to just write an easy formula than trying to make a fancy automated sheet. And to be honest, I think very few companies would actually benefit from a massively automated capex schedule. I used to run finance at a company with hundreds of employees and we'd have maybe 5 large capex purchases a year, so it was easier to just create something just like this video. But ya I agree with you that if you worked at a company doing billions of dollars a year in revenue and hundreds of CAPEX purchases you would definitely want to automate with a formula. I'll try to think of how I would make one. Do you have any ideas actually?

[@johnhoangtrongvu4682]

@@eric_andrews I tried typing out what I did, but it's a bit difficult to explain by writing only. Could I send you over the template I made? Basically, whenever you create a new Capex item, it will show up automatically in the depreciation schedule. However, I can't seem to create the correct formula, in which the table automatically fills the correct months (starting from when the asset is purchased), and ending after X amount of months (lifetime)

[@fitnamasiagroup1497]

@@eric_andrews Hi Eric, just wondering if you're still interested. would be happy to send it to you

[@FamilyBenjamin]

Can you send the schedule to me?

[@yaumichelle7162]

Very good, useful, thank you so much.

[@agungparasara9261]

amazing video. thank you eric

[@eric_andrews]

My pleasure Agung, really glad it was helpful for you!

[@kolawolekareem4125]

This video is really helpful. Thanks for the effort. However, i can't see the link to download the excel sheet. Kindly assist.

[@eric_andrews]

Right there in the description.

[@muhammadarsalanyasir8722]

Simple & Amazing

[@eric_andrews]

Cheers

[@lyle6699]

What happen if a fixed asset is fully depreciated. Should you remove from your lapsing schedule?

[@eric_andrews]

@@lyle6699 yep

[@lyle6699]

@@eric_andrews if a fixed asset fully depreciated, it will remain in balance sheet if it's not yet sold or disposal?

[@mfourmanagement9440]

Love this video

[@eric_andrews]

Great!

[@mahmoudkaram2209]

This is for only S.L Method, buddy right?

[@eric_andrews]

Yes this is straight line basis depreciation

[@matthewiriogbe3212]

Eric, you are too much

[@eric_andrews]

Haha, thanks Matthew - really appreciate it 🙏