A simple procedure ensures that all goods and services can be offered with repayments over a three year period. At times it may seem more attractive to pay cash for computer equipment, however in the long run it can prove more expensive. From a financial point of view, cash resources are better utilised for working capital, whereas software and hardware are best budgeted, like staff costs, throughout the year. Leasing is a highly tax efficient way of financing your business. Leased assets are shown on the balance sheet and are depreciated in the normal way, with rentals taken through the profit and loss account as an operating expense.
Cash is a precious commodity and is usually best used as working capital.
To allow your company to take advantage of the latest technological developments it is often more beneficial to have a fixed cost per quarter with upgrades when available or required. This allows for upgrades and additions to equipment during the period of the lease without increasing the quarterly costs. Your system can now grow with your Company.