Let’s talk hardware. Not the kind that belongs in your tool belt or box, but rather desktops laptops, and multi-function printers. I will outline the pros and cons between purchasing and leasing as well as how to keep track of your equipment. Plus the benefits they bring to your business.
Let’s look at differences between leasing and purchasing new equipment.
Advantages for purchasing new equipment:
- Ideal for small businesses.
- Ability to deduct a percentage of the value of IT investments from taxable income.
- Not tied to a long term agreement which may be difficult to end if needs change.
Disadvantages for purchasing new equipment:
- Pay the full cost up front.
- Equipment depreciates quickly and may be obsolete after a few years requiring further investment.
- Retailers or suppliers may charge to dispose of old equipment.
Advantages for leasing new equipment:
- Financial Flexibility – Costs can be spread over a period of time so the impact on cash flow is less drastic.
- Tax Benefits – The full cost of lease rentals can be deducted from taxable income.
- Maintenance Contract – Replacement with new equipment in event of total failure.
- Periodic upgrade or replacement with new equipment as part of the contract, keeping technology up- to- date.
- Disposal of old hardware – Some leasing contracts include a disposal clause which arranges free collection of old equipment and disposal in an environmentally sound way.
Disadvantages for leasing new equipment:
- Overall cost may be greater than purchases.
- Business will own the equipment until the end of the lease. It may be obsolete if the lease is lengthy.
Asset tracking is used to track all your equipment in the event of installation, move, add, and change or better known as IMAC. Keeping track of assets helps business know when a lease is coming up for renewal and helping businesses to better budget for the expense. In the case of a large corporation with multiple locations, one of the best ways to track equipment is by serial number. Serial numbers never change, therefore the assets will be easy to identify. Tracking systems can be customized to meet specific needs.
Please feel free to forward this information to others. If you would like to learn more on this topic or would like to request an area of technology you are interested in, please send me an email.
I have worked is various positions as a system administrator, support technician, as a help desk support, and as an IT consultant in a corporate environment. I currently run a small business where I provide computer services such as hardware configuration, installation, for residential and for medium and small businesses. You can contact me by email or visit my website at https://www.mdsystemsolutions.com.