SMB Accounting: The Computer Rental Advantage
Photo: Computer Rental Advantage: Preinstalled Software allows Temporary Employees to be productive immediately
by John Beagle
Every SMB has accounting, finance, hiring, training, advertising, marketing, operations, safety and inventory issues. In many circumstances, renting technology is the better option with the added advantage of tax savings.
There are many advantages for utilizing the services of a computer rental company. In this article, we will review some of the advantages of renting technology for your SMB accounting department.
SMB Accounting Reasons to Rent a Computer
Year end or accounting projects are a common reason why SMBs rent technology. You need extra people, printers, copiers, MFPs and or computers to get the annual reports completed.
Expensive Option 1: You could go out and buy computers but after a month or two, they are no longer being used. They are in the way and before you know it they don't work anymore or they don't have the latest software, virus protection and other services installed.
Better Option 2: Renting a couple computers cost a fraction of the cost to buy. Yyou can even get them installed on your network and hooked to company email and network by the technician(s) who delivers your computer(s).
What Every SMB Accountant Knows: There is a TAX ADVANTAGE to Renting
When you buy copiers, computers and other technology, you have to capitalize that equipment. By capitalizing the SMB now has to pay tax on that property AND as a double wammy, they can only expense 1/5 of the cost per year for 5 years. That means the SMB has to pay higher taxes despite the technology expenditure.
100% Tax Deductible
The tax advantage to renting is that renting is an expense item for most companies. Expenses are immediately and 100% fully tax deductible when used 100% for business purposes.
Rent a Temporary PC for Temporary Employee
Nothing is makes more sense than renting employees and pc's together. Unlike your temp employee, your temp pc can be pre-configured with your company software when made available.
Software Pre-Installed on Rental Computers
Whenever you order computers and laptops, you always have the option of having your company software pre-installed on your rental units. This saves your computer guy time and gets your user online fast, making it easier to train the temp.
Replace Slow Computers
Hey, its tax season and you have some real slow computers. Unplug those bad boys and get a rental unit in for awhile. See your accounting department productivity go up fast.
Less Cash Usage
If you buy, install and maintain you will spend much much more than renting monthly. Perserve cash, rent only when you need, return when done.
Rent computers, printers, copiers for any accounting project.
Other Articles on Topic:
Why rent a computer? Renting vs Leasing
Accounting Firms using Printer, Copier adn Computer Rentals