Outdated Technology A Drag on Small Businesses

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Keeping around outdated computers could cost businesses more than the price of an upgrade. PCs more than four years old can cause a significant decrease in productivity and incur high repair costs, according to a recent survey from Intel. Small businesses spend an average of $427 dollars on repairs for computers more than four years old. On top of that, businesses lose an average of 42 productive hours a year because of outdated computer systems. At a wage of $20 an hour, this means $2,520 is lost just from decreased employee productivity.

“Upgrading to new PCs is one of the wisest choices a small business can make,” said Rick Echevarria, vice president of PC Client Group and general manager of Business Client Platform Division at Intel. “PCs are largely considered the foundation for many of these companies, and this study makes a clear cut case for refreshing them on a regular basis.”

Even businesses that aren’t completely dependent on technology can suffer greatly from disrepair. A computer outage could mean the inability check out customers or calculate prices, which may result in a day of lost sales. Furthermore, administrative tasks like budgeting or payrolling could be hindered, putting added stress on business owners.

A technology upgrade could ensure tasks run more smoothly and save businesses money, however, it may be too high for some budgets. Luckily, with options like equipment financing, owners can attain upgrades without spending all their cash on hand. Small Businesses can enjoy the benefits of new PCs without a major dip in their available budget.

Small businesses who are considering upgrades before the end of the year could also enjoy substantial tax breaks. As outlined in Section 179 of the tax code, owners could save up to $500,000 on business-related equipment purchases, which includes computers. Owners will need to act soon, however, as the current parameters of the code are set to end Jan. 1, 2014.