why is amortization important in accounting 
amortization helps businesses and investors understand and forecast their costs over time in the context of loan repayment amortization schedules provide clarity into what portion of a loan payment consists of interest versus principal this can be useful for purposes such as deducting interest payments for tax purposes amortizing intangible assets is also important because it can reduce a company s taxable income and therefore its tax liability while giving investors a better understanding of the company s true earnings 