Bone are often considered to be a type of fetish (the definition meaning: an object regarded as being the embodiment of a spirit or having magical potency). Bones tend to have a rather surprising amount of uses in a variety of practices. They may be used for divination (which often seems to be what most people associate their use for). They may also be used in spell casting. Sometimes they serve as offerings or sacrifices or symbols for specific deities and spirits. It is not uncommon for bone to be used for the creation of tools: some staffs, rattles, wands, etc can incorporate bone fairly easily. They can be used for the decoration of altars or such items. Due to the appeal of bones, they can be fastened into jewelry and used in that manner. Some suggest that animal bones, in particular, are good for connecting to the spirit of specific animals or energies related to them- as well as taking on certain qualities of those animals (if you channel).
A good article on using bones in practice:
http://themagickkitchen.com/bone-magick-for-the-kitchen-witch/
Collecting Bones
There is a certain etiquette that you may or may not follow when using bones. For one, you should always know the law in regards to hunting animals and using them for your workings. You need to get a proper hunting license, for instance, and only hunt at appropriate times of the year for certain animals.
Nature always provides bones, as animals are constantly being hunted, dying of natural causes, so on. In exploring nature, you may stumble across bones and bits of animals that you can choose to use if you so please.
Some would also suggest that you must be respectable to the animal whose bones you are taking: for instance, trying to use all of the animal in question by consuming the meat, finding various uses for its other parts, and treating the animal with respect and honor.
Cleaning Bones
Cleaning bones and preparing them for use can be difficult for those who are a bit squeamish or whom may have never cleaned bones before. Some common methods for this include maceration or the bury-and-retrieve method.
Maceration involves removing any skin or flesh that remains stuck to the bones. One way of going about this is to cover the bone(s) completely in water. Every few days the water should be replaced (and water that has been soaking the bones can be added to your garden or compost). You will know when you are ready for the next step when the water stops becoming murky. At this point, scrub the bones to remove any tissues that may remain. If you leave the bones submerged in hydrogen peroxide, this will serve to sterilize and whiten the bone. Afterwards, allow the bones to dry.
A more in-depth explanation of maceration (if you would like to attempt this):
http://www.skullsite.com/misc/macerationmanual.htm
The Bury-and-Retrieve method is exactly what you would expect. You can bury an animal fairly deep and allow nature to run its course. You may wish to weigh it down with something, so that scavengers and other animals do not dig it up. You may also wish to keep an eye on the site you buried it at and note any signs that other animals have attempted to take your bones. To this end, it may help if you also bury the animal in a burlap sack. It depends on the size of the animal, but it can sometimes take anywhere from a couple of months to a year for most of the flesh to rot away.