Discussion thread with 100 words

From what I have gathered and read, when a business is just starting out, accelerated depreciation is useful because it allows the business to lower its taxable income more significantly in the first several years. Also, with accelerated depreciation it's assumed that equipment purchased at the start of the business will be used more excessively in the beginning, which will in turn reduce the value of the asset more quickly. Both accelerated depreciation and depreciation allow a company to depreciate assets over time, the accelerated depreciation allows this depreciation to happen at an accelerated rate, hence the name. With depreciation, taxable income is lowered which in turn results in the company paying less in taxes and increasing cash flow.

If I were to start my own business, I would make sure I was utilizing reliable accounting software to input financial data. I would then use this data to monitor profits, expenses, and trends. I also believe monthly financial reviews would be important to the success of any business. Doing so can help indicate any red flags, or perhaps show elements that are working well and some that are not. I could then use this information to make changes or adjustments to hopefully increase profitability for the company.