Understanding Changes in Accounting Estimates: Practical Insights for Accountants

Let’s face it, accounting isn’t just about ticking boxes and crunching numbers. It’s about telling the real story of your business. And sometimes, that story changes. Whether it’s a delivery van that’s still running five years past its “retirement,” or machinery that refuses to quit, it’s time we talk about what to do when the numbers on your books don’t match what’s actually happening on the ground. In this article, we unpack how to handle these changes what to do when assets have been depreciated to zero but still have some kick left in them, and how ignoring this can quietly erode your business’s net asset value. Let’s get those estimates back on track!