What is the best time of year to buy office equipment? Often, the fourth quarter or end of the year is the best time to purchase new equipment. The end of the year is a time when departments try to get the most out of their budgets, save on taxes, and upgrade aging infrastructure.
End-of-Year Savings on Office Equipment
From October through December, the fourth quarter, companies are looking to maximize tax deductions – although, this will not hold true for companies using a different fiscal year than the calendar year for their tax returns. At the end of the year, surpluses in the budget may be available, making it even more attractive to invest in long overdue equipment and digital device upgrades.
Still, even if a company manages accounting based on a non-calendar fiscal year such as July 1 to June 30, the end of the calendar year may be the perfect time to upgrade electronic equipment and computer systems. Office equipment such as computers, copiers, and printers can often be available at a discount – even beyond the hyped-up sales of Black Friday and Cyber Monday.
Computer equipment companies may be reducing old inventory to make room for the next year’s models. Many of these devices, such as printers, may still have the latest technology – and the newer model may only have a minor upgrade that is negligible in terms of performance improvements.
Additionally, unless a company has a seasonal business that gets busier around the holidays, the holiday slowdown may be the perfect time to plan and implement a major equipment upgrade. By the time the upgrade is done, the office will be ready to start the new year with improved technology and better device support.
Tax Savings on Writing Off Old Equipment
At the end of the year (or the fiscal year), companies can generate some significant tax savings by writing off and writing down old and damaged equipment. Here are some steps to take:
Take a Full Inventory of Computer Equipment and Devices
A full inventory of office equipment, such as desktop computers and multifunction printers, should be done. Any devices such as MFPs (multifunction printers) that are obsolete or damaged should be put on the list.
Calculate Write-Offs and Write-Downs for Tax Purposes
The company accountant will use this information to determine the value of write-offs for tax purposes. For example, obsolete or damaged (beyond repair) equipment would be listed as the full value for a write-off. Damaged but “usable” may be listed with a reduction in value for a write-down.
New Office Equipment May Be a Tax Deductible Business Expense
Whether or not the company writes down or writes off old equipment, new equipment may be listed as a business expense in the yearly tax return. The company accountant will know best how to determine these potential tax savings and should be consulted on the potential tax benefits when considering the purchase of new equipment.
Prioritizing New Technologies and Equipment to Purchase
Given the potential benefits of making some upgrades to office equipment at the end of the year (or fiscal year), the question, then, is what to prioritize with an upgrade in office equipment. Good purchases to make prior to the end of the year include electronics, software and apps, office supplies, furniture, and advertising.
Considerations for Updating Technology Infrastructure
Technology is a critical aspect of business today so updating office tech is a good end-of-year investment. When looking at which possible upgrades to implement, a full assessment of current office technology can be done. For example, a business that still has a lot of computers running Windows XP is long overdue for an operating system upgrade.
One increasingly important update these days is the transition from network printing to cloud-based printing services. This solves a lot of perpetually annoying problems of printer drivers not working and having diverse devices to connect. Xerox ConnectKey technology is one such technology that helps to connect multifunction printers via the cloud.
Best Time of Year to Buy Office Equipment: Make the Most Out of Year End Equipment Opportunities
With new advancements in technology, such as cloud printing, now is a great time to start planning end of year office equipment upgrades. With the right strategy, not only can companies save money on taxes but improve office functionality with better, more integrated electronic equipment. And that is a win/win.
Zeno Office solutions is a leading provider of managed print services. For more information on upgrading your printer ecosystem, contact Zeno Office Solutions.