It feels like we were just celebrating the start of 2021 and now we are already in the last quarter of the year. It is also the last chance that businesses have to upgrade and do things that can reduce their tax bill prior to next spring.
Small businesses can deduct a number of technology purchases and several of these can also qualify for a bonus 100% depreciation deduction. This makes now a great time to make any purchases that you were considering for improving and maintaining your technology infrastructure.
Both hardware purchases and off-the-shelf software can be deducted. You can deduct equipment in several other categories as well. Here is an overview of items that can qualify for tax credits:
- Hardware (PCs, network equipment, servers, mobile devices)
- Software (as long as it is not custom made for your company)
- Communications equipment (VoIP desk phones, headsets, etc.)
- Security systems (IP cameras, digital access door locks, etc.)
- Office equipment (printer, copiers, etc.)
When making any technology purchases, you will want to get the best value and the biggest return on your investment through productivity, time savings, improved security and similar benefits.
Here are some of the best technology upgrades that you can make to boost your business capabilities as well as give you a tax break in a few short months (if purchased by December 31st).
Looking for Technology Upgrades? Try These!
Wi-Fi Network Upgrade
Your wireless network impacts everything that your office does. If it is slow or provides spotty coverage during peak use, your team could be looking at spinning wheels on their cloud apps which will hurt their productivity.
Look for two specific things when doing Wi-Fi upgrades to increase speed, security and reliability:
- Wi-Fi 6: Any new router purchase you make should have Wi-Fi 6 configured. This is the newest standard and it represents a significant improvement in speed and network security.
- Mesh system: A mesh network system gives you several units instead of just one for delivering your broadband signal. It boosts reach and reliability.
Equipment to Facilitate Your Remote Staff
Eighty percent of company leaders say that they are going to continue to allow employees to work remotely either part or full-time.
This is a major shift in the workforce and many small businesses in Connecticut and throughout the country are still adjusting.
You can improve your remote team infrastructure with equipment purchases that give your employees the same types of tools and support that they had when working at the office.
This may include things like:
- Business desktop or laptop
- High-quality headset
- Printer
- Office desk & chair
Cloud Security Cameras & Systems
Security cameras have become much more affordable since they became cloud-based. By either upgrading your current security system or adding a new one, you can improve physical building security and potentially lower your property insurance premiums.
Cloud security systems are fully scalable – you can have a single camera or multiple. They can also be accessed from any device which provides an easy way to ensure that your building is secure during evenings and weekends.
Devices to Boost Your Video Meeting Quality
Video meetings are the new default meeting place these days. However, if your video conferencing system is simply your desktop computer, you may not be making the best impression.
An investment in A/V devices (soundbar, dedicated video display, etc.) can improve your company’s image during online meetings with prospective clients. It can also improve meeting efficiency by reducing the time lost when people are having a hard time hearing each other.
New PCs Loaded With Windows 11
You can reduce the cash burden of purchasing any new Windows 11 computers to replace PCs too old to be updated by buying them before the end of the year. If you’re an early tax filer, you can recoup some of that expense in just a few weeks using purchase and depreciation deductions.
Windows 11 has been officially launched and is now rolling out to compatible Windows 10 PCs. However, not all office computers will be new enough to handle the upgrade. In order to ensure consistency, it is best to upgrade those older computers now with new PCs already loaded with the new operating system.
Upgrade Your On-premises Software
If you use any on-premises software for Microsoft Exchange or another productivity tool, you can upgrade your software before the end of the year and deduct the cost when filing your 2021 taxes.
It is not a good idea to run older software once a newer version has been released. If you keep it long enough, it could lose vital patch support and leave you vulnerable to a security breach. Outdated software also holds your team back because they don’t have access to updated features.
Need Expert Help Upgrading Your Technology Environment?
Make smart and informed IT upgrade decisions with help from Sound Computers! We will sit down with your Connecticut business to guide you in making cost-efficient decisions on your technology purchases.
Contact us today to schedule a free consultation. Call 860-577-8060 or reach us online.