Give your business equipment an upgrade in the new year
2021 is fast approaching (thank goodness!), and with a new year comes the opportunity for a fresh perspective. It’s a time of reflection for all business owners. In the coming year, what are your goals? More sales, maybe? More efficient workflows? Better customer service? No matter what your goals are in the coming year, Central Business Equipment is here to help.
Upgrading your business equipment is a surefire way to lighten your workload and streamline your processes, no matter what type of business you’re in. And the best news? You can write off the costs! Better get that order in by the end of the year…
Do I Really Need the Latest Business Equipment?
The short answer is…yes. The long answer is that the importance of staying on the cutting edge in every area of your business is more critical than ever before. Technology is increasing at a breakneck speed. Computers used to last for up to ten years. Now it’s recommended that you trade out your screens at least every three years to make sure you’re keeping up with software requirements and customer satisfaction.
Think your current setup is working just fine? We hear you! But make sure that you’re regularly surveying your employees about their most common tech hangups and frustrations. Invite an open dialogue with no repercussions. They’re the ones working with the equipment, so they likely know better than you when it’s time to upgrade.
Upgrading your equipment helps you:
- Stay competitive
- Decrease time wasted
- Increase efficiency
- Save on energy bills
- Improve your balance sheet
The newer and faster your equipment, the more quickly your employees are able to complete their work. This streamlines your processes. Waiting three minutes here and there at the printer may not sound like a lot, but that’s almost 15 hours a year – per employee – that you’re losing to a full stop in productivity. And for every break in concentration, it takes an average of 20 minutes for most people to get back in the flow. Now we’re talking really serious numbers.
When you buy new office equipment, you can write off the cost by using tax breaks. For instance:
You can write off what you spend on office equipment up to $1 million dollars! For most small businesses, that more than covers their purchases and expenditures for the entire year! Whether you’re buying printers, shredders, mailing systems, or copiers, you can write them right off under section 179.
Note: This tax break does not produce a benefit for businesses who are filing a loss for the year, but there are still options if you are doing so.
Additional Depreciation Allowance
This break allows 100% of the cost od depreciation to be deducted. In the past, this write-off was only allowed in the case of new property, but now it can be used on pre-owned property as well!
These tax breaks apply whether you finance your purchase or pay cash upfront.* If you do finance, you can also deduct your interest costs. If you are leasing your equipment, you usually cannot claim the total on your taxes.
*Please note that we are an office equipment company and not CPAs or legal advisors. Everything written in this article is based on our understanding of the current tax law and does not constitute legal or financial advice. Always consult with a professional about your tax questions.
The Benefits of Upgrading Your Business Equipment
A small investment in new equipment can pay off big when it comes to reducing your operating costs, improving your employees’ efficiency, and keeping up with today’s technology. If you have any questions about which business equipment is best suited to your company’s needs and available space, contact Central Business Equipment. We can provide you with a quote over the phone, or in-person at your place of business.