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
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 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 🙌
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!!
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.
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).
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?
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?
@@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)
![Monthly Budgeting & Forecasting Model [Template Included]](http://i.ytimg.com/vi/yJcL4et-ClY/mqdefault.jpg)
![Monthly Budgeting & Forecasting Model [Template Included]](/img/tr.png)
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
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!
Will do! Excel is a powerful tool, but many people never really learn how to use it. 100% agree thanks for your thoughts!
Thanks!
Sure thing!
Thank you for your Explain in Depreciation & Accumulative Depreciation in different usage in 3 Statements. Awesome.
My pleasure, cheers happy man!
Very good and easy to follow.❤
🙌
Thank you for this! Extremely helpful.
You're welcome!
Hi! Thanks for the nice video. Was able to do likewise with different numbers, turning my Excel sheet into a template. God bless!
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 🙌
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!!
Thank you for such beneficial information, and for sharing the template.
You are so welcome!
amazing video. thank you eric
My pleasure Agung, really glad it was helpful for you!
Simple & Amazing
Cheers
Very good, useful, thank you so much.
Love this video
Great!
Hi Eric
That's amazing. Can you please tell how we can get the useful years of machine?
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.
Hello and thank for the video, why the depreciation isn’t a negative number in the income statement?
Because it is an expense, so all expenses are subtracted from the revenue and shown as "positive" numbers, which are then subtracted
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).
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?
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?
@@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)
@@eric_andrews Hi Eric, just wondering if you're still interested. would be happy to send it to you
Can you send the schedule to me?
This video is really helpful. Thanks for the effort. However, i can't see the link to download the excel sheet. Kindly assist.
Right there in the description.
What happen if a fixed asset is fully depreciated. Should you remove from your lapsing schedule?
@@lyle6699 yep
@@eric_andrews if a fixed asset fully depreciated, it will remain in balance sheet if it's not yet sold or disposal?
This is for only S.L Method, buddy right?
Yes this is straight line basis depreciation
Eric, you are too much
Haha, thanks Matthew - really appreciate it 🙏