When you have a business the business has what is called an asset, and those assets are used in the business to make a profit or make sure jobs can be completed. Like a work truck, a business owns as an asset and just like with any vehicle the value of that vehicle starts to depreciate. And when you do your taxes for the business you can claim depreciation expense. They have depreciation calculators that you can use to determine what percent of depreciation you wish to claim.

with accelerated depreciation you can claim a higher rate of depreciation in the beginning years of that assets expected usage. This can help lower the amount of taxes your business might have to pay which allows maintain more cash flow for your business in the begging years of your business.

Having record of your financial statement is important when making a business decision, that statement will allow you to see your businesses earning through a specific time period. Also having a detailed balance sheet to keep track of all the assets the company owns as well as all the debts the company carries with it. Having those things allows you to see if it is feasible to allocate money to another debt or if its possible for the company be able to place money towards a larger purchase order of supplies for future jobs.

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