Running a business is expensive. You have to worry about paying your employees fairly, and that means paying for benefits as well. Office operations can quickly add up when you consider utility bills for large buildings. Don’t forget the investment required in the assets that make your business possible.
Smaller businesses don’t have the capital necessary to invest in larger assets like heavy machinery, warehouse equipment, or computer hardware. But many of them don’t have the option to do without the asset entirely.
Leasing assets is a good way to acquire the equipment your company needs while saving money. There are several areas in which leasing can benefit your business.
Payments Are Spread out over Time
Sometimes investing in assets is difficult because a company doesn’t have all of the capital upfront. When leasing equipment, you won’t have to worry about having all of the funds before using what you need. You’ll make payments for your leased equipment, making it possible for you to get to work faster.
Leased Equipment Is Tax Deductible
Most lease payments are deductible on your tax return. Depending on your lease terms, you can write the payments off as business expenses.
Lower Risk of Asset Obsolescence
In a world where technology is constantly advancing, investing in equipment that could become obsolete in a year or two can be problematic. Unless you have the capital to continue buying the newest assets, or are willing to risk compatibility issues, buying specific assets doesn’t make sense. Most leases will come with the option to upgrade after a certain amount of time has passed.
Lack of Ownership
When you lease an asset, you don’t own it. For certain assets that are likely to become quickly outdated in a few years, leasing may be better than owning the equipment so you don’t have to deal with buying an asset that will become useless or old in a short window of time.
If your company decides leasing an asset is the way to go, Asset Panda’s lease asset management software will help you track your equipment, software, machinery, and more. There’s a lot at stake when your company uses assets that don’t belong to them, and keeping accurate records will help you out through thick and thin.
Some leasing agencies require certain documentation before they will agree to leasing certain assets. They want to make sure you’ll take care of their investments, and they have specific requirements you’ll need to stick to while under their lease. Using lease asset management software is the best way to make sure your company is abiding by these regulations at all times.
Asset Panda makes tracking valuable assets easy as can be. With our mobile app, your employees can keep your database updated wherever they work. This means you can rely on regularly updated information about your leased assets. You can make sure they’re being kept in the best conditions, and can quickly address any potential problems as they happen.
Our software’s built-in search makes it easy for you to find information on assets in your company’s possession. When your department needs to make quarterly reports, you can access specific entries with ease. Custom reports and settings make it easy for you to note which assets are leased and which assets your company owns.
Want to see how Asset Panda can help you keep track of your leased assets? Sign up for a free trial today!