How Do Fixed Assets and Depreciation Affect Your Financial Statements? Understanding how fixed assets and depreciation impact your business’s financial statements is essential to maintaining long-term profitability, improving cash flow, and maximizing tax efficiency. The two accounting elements represent much more than recording entries because they function as strategic tools that adjust revenue and taxes. Business owners who work with Renaissance Advisory gain access to team-based strategic cost-reduction consultation which includes extensive fixed asset performance reviews. Read more: https://renaissance-advisory.com/how-do-fixed-assets-and-depreciation-affect-your-financial-statements/