Section 179 Provides End-of-Year Tax Benefits
Section 179 of the IRS tax code allows businesses to write off the total purchase price of any qualifying equipment or software in the year it was purchased or financed. This deduction was designed to help small businesses invest in themselves and, in turn, boost the American economy. If you’re a small business owner considering leveraging Section 179 while buying new tech for your business, you could realize a lot more than tax savings.
New, innovative technology can revolutionize a business. From fostering innovation and growth to boosting efficiencies and reducing errors, the positive impacts seem endless. In this blog, we’re going to explore three main benefits: productivity, security and morale.
The modern business day is no longer restricted to 9-5. Our social emphasis on work-life balance and recent world events have forced new and innovative ways to get business done. Technology has answered the call and is driving a transformation in how, where and when we work.
Cloud-based software allows people to access files and applications anytime and anywhere with an internet connection. It’s no longer critical where people are physically located. Today’s technology provides the flexibility to allow teams to communicate and collaborate from home, from the office or from a doctor’s appointment.
Employees with the right technology can:
- Chat, share files and collaborate through virtual meetings
- Get more work done by doing it around their schedule
- Instantly connect with teammates and customers 24/7/365
- Strengthened Cybersecurity
Cybercriminals love outdated technology. The weaker your security front, the easier it is for them to get inside your network. And given the rise of personal device usage and the increased frequency and sophistication of cyberthreats, business owners looking to protect themselves can’t be too careful.
It’s never too late to identify and address potential vulnerabilities. You can hire a managed service provider to perform a cybersecurity assessment, or you can research tools online. Check out the Cybersecurity & Infrastructure Security Agency’s site for more information. In the meantime, consider these best practices:
- Maintain antivirus, malware and firewalls
- Secure all laptops and mobile devices
- Implement advanced email filers
- Enable multifactor authentication (MFA)
- Regularly back up business-critical data
Boost Staff Morale
Aside from decreasing output and jeopardizing data, outdated technology has also been shown to reduce staff morale. Frustration multiplies when people spend too much time waiting on their technology. Waiting for web pages to load … waiting for reports to generate … “tech waiting” accounts for low morale and loss of productivity. And numerous studies show that happy employees lead to happy bottom lines.
If you’re serious about buying new tech for your business to boost employee satisfaction, start with your team. Ask your staff what tech is slowing them down and if they have the tools to collaborate and problem-solve. You might be surprised at what you hear.
In conclusion, the right technology can help us work smarter on a more flexible schedule while keeping our teams connected, protecting our data and much more. It’s worth taking a look at Uncle Sam’s end-of-year tax benefits, which can make new tech purchases even more attractive.
If you want to take advantage of the Section 179 deduction for the tax year 2022, you’ll need to act soon. The 2022 deduction applies to equipment in use before the end of 2022. And finally, be sure to consult with a tax professional to learn how Section 179 may relate to your specific business. Happy Holidays!