The Differences in Depreciation Methods: Are They “Real”? Using the straight-line depreciation method will cause a company to report higher profits than would be reported if an accelerated method were in use in the early years of the asset’s life. But is the company better off than if it had used an accelerated method? The answer is no! Depreciation no matter how it is computed is only an estimate. The amount of this estimate has no effect on the actual financial strength of business. Thus that uses an accelerated depreciation method in its financial statements is simply measuring its net income more conservatively than a business that uses straight-line, However, the benefits of using an accelerated method for income tax purposes are real because the amount of depreciation claimed affects the amount of taxes owed. Lower income taxes translate directly into increased cash availability in the early years of the asset’s life.