Business, both big and small, face this choice all of the time. Huge business varies from small companies’ spending plan, but both will need to make a final choice.
What will cost more in the long run? What will cost more up front? What will fit your spending plan and nature of business? Can you write this off on your taxes? While these are all good concerns, here are a few things to keep in mind when you need to make large workplace purchases or are upgrading your office devices:
What kind of budget plan do you have?
When buying a larger workplace machine, it is only understandable that you will require a large amount of cash in advance. This is why leasing tends to be a more appealing option for smaller businesses. When you lease multifunctioning printers, for instance, you could have the best on the market without spending your office’s entire budget.
How much do you print?
How much do you print, let us say, monthly? When it comes to multi-function devices, printing machines, scanners, and photocopiers, you should at least have an approximate figure on the number of pages your business prints each month. Keeping an eye on your printing will not only assist you in determining how much work the equipment handles, but also helps you see if it is producing high-quality outputs.
There is no concrete number with how much is “printing enough,” but an excellent rule to follow is if you print less than 700 pages a month it might be cost-efficient to buy outright a medium size printing device.
If you think that you are going beyond 700 a month, it would be best for you to lease a device.
Do you wish to take out of your taxes?
If you decide to purchase outright, you are allowed to declare 40% of the entire purchase rate on your next year’s taxes and 25% of the balance after that. If you decide to lease, on the other hand, you could declare your monthly lease payment as an expenditure. This causes a better tax payment management for a lot of businesses.
Can you fix your own devices or have the budget to work with a technician?
Bad things could happen, error indicators turn-up, and equipment could totally break down. When you choose to purchase workplace equipment outright, you will have to prepare to fix it or spend extra dollars in hiring a reliable service provider. When you choose to lease devices, you will be covered for all technical issues. The business that rents out the devices will be available to do all updates and troubleshooting as these businesses have personnel dedicated to executing such tasks.
Is it important to your business to keep up with technology? This is among the biggest advantages of leasing, you have the choice of renting the latest items out on the marketplace without purchasing straight-out all the time. Technology moves fast, if your business has to keep up to date, leasing is one of the most cost effective ways of achieving it.
After answering these questions, it should be clear if it is better for your business to lease or purchase. If you decide to lease, always read the small prints on the written agreement and do not hesitate to ask more questions.