While many business-owners debate the advantages of leasing equipment and software over buying, there is one fact that stands out above the rest: leasing software means you can avoid sunk capital when the technology becomes outdated. It simply does not make sense, especially in this economy, to invest in a product that will be obsolete in a short amount of time.
Software, phones, computers, music players, gaming systems—they all become outdated relatively quickly as new technology and new trends cause them to become obsolete. Vaiafn.org is a website devoted solely to bringing attention to outdated technology! Buying this equipment and software will inevitably lead to one of two outcomes: either the product must be replaced, and the initial capital was wasted; or the outdated product is kept to save costs, and the business suffers.
Outdated technology and software means that your company cannot be as competitive as it may need to be in this economy. In this week’s AICPA CPA Insider, James Bourke claims that while not all technology needs to be thrown out as soon as something new comes along, “to be productive and responsive to clients, your staff needs tools that allow them to talk, e-mail and text.” For the world of accounting, communication is a must. You must analyze your own business and industry needs and decide what technologies you simply cannot afford to fall behind on.
When you lease with Five Point Capital, you avoid having to invest in equipment repeatedly as the equipment is updated. Not only does modern, cutting-edge technology appeal to customers and clientele, but it also serves a greater purpose; technology is constantly being updated for a reason—there is always room for improvement. Today’s technology is consistently becoming faster, more efficient, more user-friendly, and more convenient. Having access to the newest resources means your business can benefit from the latest knowledge and advances.
Even Microsoft is doing their best to encouraging the leasing of their products, as reported by ComputerWorld in an article last month. As a company that is always at the forefront of updates and improvements, Microsoft recognizes that it is often beneficial for companies to lease software and equipment in order to stay current. Technology is just changing too rapidly for buying and investing to be cost-effective for businesses in this economy.
The money-savvy business owner may be tempted to cut costs by skimping on the latest technology, but that is not the wisest choice. It is important to assess what technologies are available in your industry and decide what equipment is necessary to keep your company in the competitive circle. This 5 Point Capital blog can help you determine what equipment would be beneficial for your company to lease. By leasing equipment through Five Point Capital, you can avoid wasting money on soon-to-be outdated technology and falling behind the times with it. We are in the age of information, and no one should be left behind.
