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Where Has The Year Gone???
This certainly has been an
"interesting" year. In view of the recent politics, there
was a very relevant quote from Robert F. Kennedy in 1966 when he said:
"There is a Chinese curse which says, 'May he live in interesting times.' Like it or not we live in interesting times...."
Although it appears that the origin of the phrase is more
likely to be the proverb:
They are both equally applicable to the
business climate in which we find ourselves today.
With this historical election behind us, I
hope that we can start to focus our minds and make some business decisions in
the remainder of this year which will assist us in improving our productivity
and profitability in 2009.
In previous Newsletters we have mentioned
the need for controlling costs and having access to accurate trusted information
in a timely fashion. A number of
additional external factors have happened this year, one of which was the
Economic Stimulus Act.
In this Act, there was a provision for
increasing the amount that could be expensed on Software systems and
implementation in 2008. Currently, this provision is due to
expire on December 31, 2008.
It is important to review your Tax position for 2008 with your accountant
and see whether you will gain any benefit from investing in software and systems
in 2008 as opposed to deferring this investment to 2009.
An added factor is a by product of the
current credit market.
We are finding that banks are needing to
lend money and are extremely eager to take capitalized leases for software and
bundle all implementation services into the cost, which is then deferred over a
3 or 5 year period.
As an example of this, very attractive rates are available from some of our leasing partners, and one of these partners has teamed with SouthWare® to provide a very attractive financing deal. It even includes an option to allow the first 90 day period of the lease to be at a $99.00 per month basis. This allows the investment to be taken in 2008, gaining the tax benefit, and deferring the full cost of the lease until the system is implemented and producing improvements in the company. (see Related Resources for more information)
If you feel that you would like to make
any investment in your future in this fiscal year, please contact us as early as
possible so that we can discuss the best option available to you.