Springtime means the end of cold weather and the welcoming of sunny days ahead. It’s also the beginning of the busy season for many small businesses.
As a business owner, you likely are constantly considering your future needs so, before your schedule gets too hectic – although, is it never not hectic? – take the time to evaluate your needs for the year and decide whether you have enough equipment to meet the demands of your customers.
If you need to make a change, equipment leasing could be the way to go, especially because you may not have the cash to buy equipment outright. Leasing saves you money while letting you update your technology, stay competitive and take a break from the stress of maintenance.
Much like when you spring clean your house, you should deep clean your business by checking the condition of your equipment and determining your inventory needs. Then, do some KonMari-style decluttering, and replace the old stuff with something better.
When you upgrade, the good news is that an equipment lease means you aren’t responsible for selling or repairing anything down the road.
“It’s hard to liquidate a depreciating asset,” Liberty Capital Group says. “Smart business owners will let the equipment pay for itself while it generates revenue or creates savings.”
When your lease is up, depending on your contract, you can either buy or return the equipment. If it has a short shelf-life or becomes quickly outdated, leasing allows you to easily update while preventing the clutter that happens when you can’t sell old machinery.
Prepare for a busy summer
Many small companies experience an upswing in business during the summer, so spring is a crucial preparation period that you should use to guarantee success in the months ahead. For example, you might consider an equipment lease for some common needs:
· Upgrading hardware and office furniture
· Upgrading aging machinery or technology
· Replacing obsolete equipment
· Revamping a vehicle fleet
· Improving efficiency and productivity with new tools
Having these updates in place before the busy season will help you avoid a lapse in your service when you should be making a profit. Even if you aren’t busy in the summer, preparing for the future will keep you from scrambling at the last minute to meet customer demands.
Improve your tax outlook
If you’re lucky, mid-April did not find you having to write a large check, rather choosing how to spend your refund. If you put the money back into your business with an equipment lease, it could boost your profits in the long run.
On the other hand, if you need to pay taxes out of pocket, increase your chance of a refund next year by taking advantage of tax-deductible operating expenses.
“If you lease-purchase a piece of equipment for use in a trade or business, like a forklift or truck … you may deduct the payments as rent,” according to the Internal Revenue Service.
For more information on equipment leasing or to apply for an equipment lease, call or visit a Liberty Capital Group location near you.