Welcome back to the Netforks blog! We’re excited to continue providing quality information about products and industry standards.
We are officially approaching “use it or lose it” season for yearly budgets. This month, we want to give you a crash course on why this season is important while also exploring the benefits of purchasing certain things over others with unused budget dollars.
What is “use it or lose it” season?
This is when the end of a fiscal period (the end of the calendar year for many businesses) is approaching. Many companies/departments still have substantial money left in their annual budgets that they will lose if they don’t spend it. In many cases, on top of losing the opportunity to spend the money, companies will decrease the budget for the next period based on the unspent amount from the previous period.
What should you buy with the unused budget dollars?
Some companies rush out and focus on spending the money while ignoring what will generate greater returns or increases in productivity. If you are self-employed, or own a small business, you should consider tax deductible options. There are a few common things that you can purchase that are tax deductible and are more beneficial than others. For the sake of this blog, we will focus on one of them: Equipment.
Not only is equipment relevant to the industry we operate in, it also could fall under the tax-deductible category and will provide you benefits long after the time of purchase or delivery.
When we say equipment, we mean actual pieces of equipment or things like forks, attachments and land clearing solutions. These items will benefit your business long after the budget has reset and could allow you to generate immediate returns or even larger future benefits.
For our customers who qualify for the Section 179 Deduction, your money may be better spent on a full piece of equipment, such as a forklift vehicle (just remember to come back to us for accessories). Not only are these pieces of equipment going to give you longevity and benefits that far exceed the alternative (nothing), but they can also directly help put money back into the pocket of your business.
Please consult your tax advisor prior to any transaction.
Another thing to consider in this conversation is the supply chains issues that are affecting many industries. As outlined by the National Association of Manufacturer’s Q2 survey, things like increased raw material costs, labor shortages, logistics costs and more are plaguing many manufacturers. Spending your remaining budget now can put you in front of others that may be waiting for a budget reset to make their purchases. Assuming that things will be available when you need them could prove costly for your business and these shortages could last well into 2022.
Do you still have budget to spend before year end? What do you plan to invest in? Do you have a go-to purchase to spend unused budget? Let us know in the comments!
Thank you for reading and be on the lookout for future blog posts! Don’t forget to follow us on social media to stay up to date with all things Netforks!