The difference between depreciation and amortization

What is the difference between amortization and depreciation? The words amortization and depreciation are quite similar and are very important concepts in accounting. However, there is a difference between depreciation and amortization. Typically, amortization is a way of spreading expenses for intangible assets over time. Depreciation is more about accounting for the loss in value of a tangible asset over time. There are several other small differences as well such as how they are calculated and having contra accounts. Magnaltus Instagram: https://www.instagram.com/magnaltus/ #business #businessmanagement #businessstartup