When it comes to investing in the equipment necessary to running your business, you want to make sure you’re getting the best bang for your buck, while also ensuring everything functions the way it should for as long as possible. For some areas of your business, owning the equipment makes a lot of sense. For others, leasing is a more cost-effective option. Technology is one of the areas where leasing comes with significant benefits.
Benefits of leasing technology
Technology is ever-evolving, and the rate at which change occurs for this segment happen in the blink of an eye. In many cases, by the time you have purchased equipment and gotten it installed across your organization, something bigger and better has already come out. Leasing allows you to take advantage of regular upgrades, so you can make changes more quickly and keep your equipment current for longer periods of time.
Leasing technology has a variety of other benefits, such as:
- Conserve cash – when you lease equipment, you pay as the equipment is used, rather than making one up-front cost.
- 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 utilized. Rather than going through large-scale technology overhauls every few years, leasing can allow you to rotate equipment quickly and efficiently.
Managing your company’s technology assets
If the companies you’re leasing from aren’t managing your assets for you, it’s a good idea to invest in asset management tools so you know when equipment was purchased, how much it has depreciated, and when it will need updates, to name a few.
What is asset management?
Asset management is the process of tracking your equipment, including part numbers, makes and models, lease terms and more in one system.
Often this comes in the form of software that tracks everything you may want to know about your asset, including:
- Makes and models
- Part numbers
- Equipment purchase date
- Upgrade dates
- Employee assignment
- Depreciation and lease terms
Asset management isn’t just for technology
Asset management is an important practice for any equipment within your organization – not just technology. It’s particularly helpful to keep track of rolling stock, trucks and other vehicles, and anything else that requires regular updates or maintenance.
Why lease your technology now?
The economy is still doing well, but any economist will tell you that it goes through cycles. Companies have been in growth-mode for a long time, but sooner or later will need to start focusing on efficiencies that help when recession does come. Planning ahead and finding efficiencies now can help prevent making more significant cuts when you really need them. 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.