With the rise of remote work, businesses are re-evaluating their approaches to equipping their remote workforce. Instead of purchasing computer equipment outright, an alternative option gaining popularity is computer device leasing or renting.
Advantages Of Leasing Or Renting IT Equipment Over Buying
OpEx vs. CapEx: Operating Lease for Tax Purposes
When businesses purchase equipment, it typically falls under capital expenditure (CapEx), requiring upfront investment.
However, with computer device leasing, there are arrangements that are considered an operating lease for tax purposes. This means that the leasing costs are classified as operating expenses (OpEx) and can be deducted as a business expense. By shifting from a CapEx to OpEx model, businesses can allocate their financial resources more efficiently. DaaS (Device as a Service) is one such leasing model that is an OpEx for tax purposes.
Tax Benefits and Monthly Payments
Renting computer equipment offers tax benefits through its monthly payment structure. As the lease payments are made monthly, businesses can claim tax benefits continuously over the duration of the lease. This provides financial flexibility and can help manage cash flow more effectively compared to a one-time purchase. By spreading out the expenses over time, businesses can optimise their budgeting.
Auto Upgrades and No Obsolescence in DaaS Leases
Device as a Service (DaaS) style leases provide an additional advantage – auto upgrades and protection against obsolescence. With rapid advancements in technology, computer equipment can quickly become outdated, resulting in decreased efficiency and productivity.
However, with a DaaS lease like a Devices For Teams package, businesses can ensure that their remote workers will always have access to up-to-date equipment.
These leases often include provisions for regular hardware upgrades, enabling employees to enjoy the latest technology without additional costs or concerns about device obsolescence.
Choice of Lease Styles
When opting for computer device leasing, businesses have various lease styles to choose from based on their requirements. They can opt for purely renting, allowing them to have access to the equipment without the intention of ownership.
Alternatively, businesses can choose a lease structure that gradually works towards ownership, allowing them to eventually own the equipment at the end of the lease term.
The flexibility of lease styles enables businesses to align their leasing arrangements with their long-term goals and financial strategies.
DaaS style leases are becoming the most popular owing to all the extra support and IT services. Devices For Teams is a one-stop-shop for all business IT needs, including insurance, MDM management and cyber security.
Reduced Risk of Misclassification
Classification of freelancers is a critical consideration for businesses. Using company-owned equipment for contractors can potentially lead to misclassification issues, as it may blur the line between an independent contractor and an employee.
By renting equipment, the lease provider retains ownership, reducing the risk of misclassification. As the freelancer is not using company-owned equipment, and the rental expense can be treated as a business expense, the risk of misclassification is significantly mitigated. Renting equipment provides a clear separation between the business and contractors, helping businesses maintain compliance and avoid potential legal complications.
IT Support Services
In addition to the benefits of computer device leasing, it is crucial to consider the IT support services offered by a leasing provider like Devices For Teams. We provide comprehensive support services, including device setup, maintenance, and technical assistance. Having access to reliable IT support ensures that remote workers can address any hardware or software issues promptly.
Renting computer equipment for remote workers offers numerous advantages over traditional purchasing models. It could improve cash flow, boost productivity, minimise operational chores for your business, and allow all your IT needs to be dealt with by one supplier.
Ryan may have been with HardSoft since 2008, but has confessed he “might still be on probation, we haven’t really talked about it”. The move to HardSoft was a natural one for him. “I like a challenge and prefer solution selling or trying to find the right product for a task”.
Ryan specialises in MDM, Jamf and Cisco Meraki and his interests include Films, Gaming and a proper cup of tea!
LinkedIn: Ryan Kelly
Tel: 0204 551 0473