Tax deduction MSPs and how businesses can benefit from them.
It's been a turbulent time for businesses over the last 18 months navigating through the COVID-19 pandemic. Many had to accelerate their remote work policies and practices. As a result, business IT infrastructures were forced to change rapidly, and Managed Service Providers (MSPs) have been in high demand. This trend is set to continue for many years to come. So, why do businesses choose to use tax deduction MSPs? Well, companies can save a lot of money by outsourcing their IT, especially through HaaS (Hardware as a Service). Let's look at the tax deduction benefits that come with using an MSP.
Save money with HaaS from an MSP
Estimates suggest that businesses that successfully deploy managed services reduce their IT outgoings by up to 45%. One of the ways in which businesses can save is by choosing HaaS (Hardware as a Service).
Reducing upfront capital expenses
The benefit of HaaS is that you reduce your upfront capital expenses. This means businesses can shift their budget allocations around and free up their cash flow. Essentially, it means that expenses come out of the operating expense budget (OpEx) instead of the capital expense budget (CapEx). As a result, managing monthly payments instead of large, upfront amounts is much more suitable for budgeting purposes.
Businesses that use HaaS have an advantage when it comes to paying taxes. With HaaS listed as a service rather than a capital expense, it reduces the liability that tax causes. This means that businesses can get the equipment needed without running the risk of getting into debt.
Access to newer technology
With limited finances, it's hard for businesses to stay up-to-date with the latest technology. When using HaaS, Tax deduction MSPs have the responsibility to be sure the hardware will handle all your tasks efficiently. In the case that the hardware is no longer capable of delivering what companies need, the MSP will replace or upgrade the equipment.
Access to maintenance
One of the benefits of HaaS is that businesses have their IT systems maintained and looked after by experts. Often, smaller businesses don't have the knowledge or expertise to deal with complex IT problems. Therefore, when they encounter a big issue, it tends to come with a large price tag to fix. With HaaS, the MSP maintains and manages all hardware for a fixed monthly sum.
Tax deduction MSPs - reducing costs with Section 179
Working with an MSP not only benefits your business’ IT, but it also comes with great financial perks. When tax season rolls in, Section 179 allows businesses to gain tax benefits for purchasing tangible goods, including IT hardware and services.
Final thoughts about tax deduction MSPs
Using an MSP has so many benefits, it's no wonder so many small and medium-sized businesses are now choosing this way of working. With HaaS, businesses can save money, have up-to-date and well-maintained equipment, and increase their tax deductions. Contact us to see how we can help your business do the same today!