Why you should consider leasing your company’s technology

When investing in the equipment needed to run your business, you want to get the best value for your money while also ensuring everything functions properly for as long as possible.

For some areas of your business, owning equipment is a good choice. For other areas, leasing is a more cost-effective option. Technology is one of the areas where leasing comes with significant benefits.

Benefits of leasing technology

The technology segment has experienced constant change over the last several decades, and it continues to evolve at a rapid pace. In many cases, by the time you purchase equipment and install it across your organization, something bigger and better has already come out.

Leasing technology allows you to take advantage of regular upgrades so you can keep your equipment current for longer periods of time and have more flexibility. Other benefits of leasing technology include:

• Conserve cash– When you lease equipment, you pay as the equipment is used, rather than making one up-front purchase.
• Tax benefits– Rather than depreciating the equipment over a long period of time, leasing can enable you to expense the equipment in regular intervals. (Always consult a tax advisor to see how this will impact your business.)
• Efficiency– Direct your resources where they will be best used. Rather than going through large-scale technology overhauls every few years, leasing can allow you to rotate equipment more quickly and efficiently.

Tracking technology assets

If the company you lease technology from doesn’t track your assets for you, it’s a good idea to invest in an asset management system. You can purchase software that tracks everything about your assets, including:

• Make, model and part numbers
• Equipment purchase and upgrade dates
• Employee assignments
• Locations
• Depreciation and lease terms

Asset management is important for any equipment in your organization – not just technology. It’s especially helpful to keep close track of trucks and other vehicles, and anything else that requires regular updates or maintenance.

Why lease your technology now?

Historically, the economy has gone through up and down cycles. Planning ahead and finding efficiencies now can help you be more flexible in the future. And, when you consider the amount of time and cost savings certain technology can provide, it’s worth taking a close look at your options now.