Leasing is a very common approach to many components of business life. From office space, to furniture, to cars – leasing allows many businesses to acquire services and products without having to take on full responsibility of their ownership. The recent surge in cloud computing services has allowed for companies to apply the leasing concept to their IT infrastructure, yet many business owners remain cautious about whether or not they should outsource their PC and desktops as well. When considering the fast-paced changes that occur within the technology industry, it’s time to consider “should leasing be a part of your IT strategy.”
Leasing is 100% Tax Deductible
The tax benefits of leasing your IT equipment instead of purchasing are fantastic. This is because leasing feed are 100% tax deductible as an operational expense under the 179 IRS Tax Code.
Avoid Outdated Equipment
When you lease your IT equipment to a solutions provider, you avoid any equipment being outdated. This is a significant benefit of leasing your IT infrastructure as outdated technology can be extremely costly to your organization. With short-term leasing options, you will be able to update your equipment at a much more regular interval. This prevents you from having to deal with selling outdated equipment as soon as it is no longer being used, and allows you to gain a competitive edge over other companies.
Improved Asset Management
As we have mentioned before, the cost of poor asset management can be a serious concern for your business. When asking yourself the question “should leasing be a part of your IT strategy,” it is important to consider how all of your technology assets are currently tracked. A MSP who is leasing your IT can track all of the technology assets within your company, so you don’t have to worry about paying for items that are not being utilized.
Constant Monthly Cost
When you choose to lease your technology assets as opposed to purchasing them, you have a pre-determined monthly line item. This approach to IT spending allows you to budget more effectively, as you will no longer be saddled with surprise costs. In fact, 35% of respondents to the Equipment Leasing Association’s survey cited this predictability as the primary benefit of leasing equipment.
No Effect on Business Credit Availability
This benefit rings in the ears of CEOs everywhere. Leasing your equipment provides a much smaller up-front cost, as opposed to huge loans or expenses. Leasing payments are also viewed as a monthly business expense instead of a liability that could contribute to long-term debt. This allows you to keep your business line of credit open and strengthen your cash flow.
Now that you know the benefits of leasing, you will be better equipped to decide if it is a viable option for your IT strategy. Still not sure how to start? Contact our experts today for more information.