Securing enough working capital isn’t the only business factor you need to keep in mind as a small business owner.
Technology has made it easier than ever for independent businesses to keep pace with larger corporations, but only if owners remain up to date with the tools at their disposal.
How to stay current
Unsurprisingly, technology offers the best way to stay abreast of technology trends.
From blogs and discussion boards to YouTube videos and podcasts focused on your industry, there’s no shortage of ways to hear the latest tech news that may impact your business.
However, some more traditional, tried-and-true methods shouldn’t be forgotten either. For instance, if you operate in an industry that has magazines or newsletters devoted to it, there’s no harm in signing up to receive them. You may find some industry-specific news that flew under the radar in the more general world of business technology.
Of course, knowing about the latest and greatest business technology on the market won’t do much good if you can’t implement it at your own small business. The simple truth is: Keeping up with new technology trends is an expensive prospect.
That’s why many small business owners turn to equipment leasing.
Stay state-of-the-art without breaking the bank
If you count yourself among this group, you already know how overwhelming and expensive it can be to constantly play catchup by purchasing new tech. Equipment leasing provides your business with the chance to stay up to date with new tech easily. Not only is it far more affordable than purchasing equipment and machinery, it allows business owners to quickly upgrade or add equipment to suit their constantly changing needs.
Of course, the benefits don’t end there. By leasing equipment instead of buying it, you can also enjoy specialized tax benefits.
Under Section 179 of the Internal Revenue Code, businesses are able to take deductions from taxable income for equipment leased. You can also speed up depreciation, as depreciation is calculated by the term of your lease instead of the life of the equipment. This can then be expensed 100 percent.
Just keep in mind that equipment leases may not be considered assets, which means the IRS’ Alternative Minimum Tax rule does not apply.
However, if you’re looking for a way to stay up to date with technology while also improving your business’s balance sheet, equipment leasing may be the way to go.