Posted by: TAZ Networks on December 4, 2020 at 12:00 pm
Many business owners struggle to finance IT projects. Here are four options.
With budgets stretched thin this year, you may be wondering how best to finance your next IT project. After all, no matter the economic conditions, hardware ages and software updates. No doubt, your business computer network could use some upgrades.
There are several ways to finance IT projects, including tax write-offs, hardware-as-a-service (HaaS), and monthly flat-fee plans.
Tax Write-Offs
Section 179. No doubt, as a business owner, you are familiar with the Section 179 tax deduction. This rule allows business owners to write off purchases such as computer hardware as a business expense. (See your tax advisor for details.) This option can vastly reduce the hardware cost of your project.
COVID-related side note: According to Section179.org, “Much of the equipment businesses purchased to conform to COVID-19 restrictions will qualify for the Section 179 tax Deduction.” (Details here.)
Pandemic Grants. Do you have funds left over from pandemic-related government grants? Some of these grants may be used to finance other business needs, including IT projects. Consult with your financial advisor for details.
Rightly claiming a tax deduction to replace aging technology is a wise investment for your business’ future and helps keep the economy rolling.
Hardware-as-a-Service (HaaS)
Based on the traditional lease model, HaaS allows your business to pay for computer hardware with a flat, monthly fee. HaaS adds the benefit of hardware replacement, as well as the option to upgrade equipment at renewal time.
Ditch Your Server for the Cloud
Struggling to maintain or upgrade your Exchange server? Look into Microsoft 365 as an option. Migrating your network to the cloud may mean you never have to purchase another server ever again. Instead, your network costs are predictable and can be budgeted monthly.
Monthly Flat-Fee Plans
No doubt, you’re considering an IT project to solve problems with your computer network. But what about ongoing maintenance and monitoring? A flat-fee monthly maintenance plan eliminates costly hourly repair fees. Ongoing monitoring protects the investment you made in your IT project.
Sometimes business owners look at replacing computer equipment as an unnecessary expense. But trying to run your business on an aging computer network isn’t doing you any favors. Get some peace of mind with faster, more efficient computer equipment. Some creative strategies can help finance your next IT project.