Why Creative Professionals Should Care About Equipment Depreciation (and How to Track It)

If you’re a creative professional, your tools aren’t just “things” — they’re your livelihood. That DSLR camera, 4K video rig, or industrial printer isn’t just expensive; it’s the reason you can deliver your craft at the highest level. But here’s the thing: those tools lose value over time — and that loss has a name in the business world: depreciation.

Tracking depreciation isn’t just an accountant’s chore. It can help you save money on taxes, plan for future upgrades, and give you a clearer picture of your business finances. Here’s what you need to know.

What is Depreciation (in Simple Terms)?

Depreciation is the gradual reduction in value of a piece of equipment over its useful life. Think of it as your gear “aging” in a financial sense.

For example: You buy a $5,000 camera. Over the next 5 years, its value drops each year as it gets older and more worn. That drop in value is depreciation — and you can record it in your books.

Why Creatives Should Track Depreciation

1. Tax Savings

In many countries, depreciation can be deducted as a business expense. That means you can write off part of your camera’s cost each year instead of all at once — lowering your taxable income.

2. Budgeting for Gear Replacement

By knowing how fast your tools are losing value, you can set aside money for upgrades before your gear becomes outdated or breaks.

3. Better Financial Insights

Tracking depreciation shows the true value of your assets. This helps if you ever apply for financing, pitch investors, or simply want a clearer picture of your business’s worth.

How Depreciation is Tracked

There are several methods to calculate depreciation, but the two most common for small creative businesses are:

1. Straight-Line Depreciation

Spread the cost evenly over the equipment’s useful life. For example: $5,000 camera / 5 years = $1,000 per year in depreciation expense.

2. Declining Balance Method

Deduct a higher amount in the early years and less later. Useful for gear that loses value quickly right after purchase (like electronics).

You (or your bookkeeper) would record this in your accounting software each year, reducing the equipment’s “book value” on your balance sheet and adding a depreciation expense to your income statement.

Practical Example for Creatives

Let’s say you run a print studio and buy a $15,000 industrial printer and you decide its useful life is 7 years.

Using the straight-line method, you would record $2,143 as an expense each year. This lowers your taxable profit and reminds you that in 7 years, you’ll likely need to replace or upgrade that printer.

The Bigger Picture: Why This Matters

Ignoring depreciation means you might:

• Overstate the value of your business assets.

• Miss out on annual tax deductions.

• Get caught off guard when your gear needs replacing.

By tracking it properly, you turn your expensive tools into planned investments — ones that work for you financially, not just creatively.

Final Tip for Creatives

Depreciation can feel like a dry accounting concept, but for creatives, it’s really about protecting your craft and your cash flow. Keep a simple spreadsheet or use accounting software like QuickBooks or Xero, and work with a bookkeeper who understands your industry. You’ll not only make tax time easier but also set your business up for sustainable growth.