Every agency owns assets: vehicles, IT equipment, machinery, office furniture… the list goes on. Over time, those assets lose value; yes, even the furniture.
This gradual decline, known as fixed asset depreciation, isn’t just an accounting detail. It directly impacts budgets, taxes, and the decisions agencies make about when to trade in, auction, or replace assets.
At its core, depreciation is the process of spreading out the cost of an asset for depreciation over its useful life. Instead of recording the full expense at the time of purchase, depreciation accounts for the gradual loss in value as the asset is used, ages, or becomes outdated.
For example, a vehicle purchased by a school district may be useful for 5–7 years. Each year, a portion of its value is written off until it reaches its estimated salvage value. This is why tracking company asset depreciation matters. It ensures that each expense is accurately matched to the time the asset is delivering value.
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Understanding depreciation does more than satisfy accounting requirements:
Depreciation tells you when an asset has given you all it can. Holding onto it for too long may mean smaller returns, while auctioning before it fully depreciates often brings back more value.
That’s where GovDeals fits into the lifecycle. Our platform gives government agencies, schools, and related entities a direct path to turn depreciated assets into real dollars. It’s money that can be reinvested where it matters most; learn how to get started.