If you’ve been looking for an opportunity to transform your business technologically, guess what?
Today is the day!
As a result of the newly passed tax reform bill, businesses of any size--whether small or large--will have access to new deductions. Your business now has a completely unprecedented opportunity to update its tech infrastructure.
If you’re a sole proprietorship, a partnership, or an S corporation, taxes on your pass-through income are about to change dramatically. In fact, you’ll now be able to deduct up to 20% of your pass-through income thanks to the new tax bill!
If you’re a C corporation, you’ll also likely see a massive reduction in your tax burden. Rather than being subject to a variable bracketed tax rate of up to 35%, your company will now be taxed at a flat rate of 21% for all profits. That makes for a huge tax cut!
Section 179 of the new Tax Cuts and Jobs Act goes even further to lower the taxes your business will owe. Under this section of the new legislation, your company will be able to write off certain tech-related purchases all at once, rather than depreciating them gradually. In fact, you’ll be able to deduct as much as $1 million in up-front purchases: that’s nearly twice the current limit of $510,000.
As a smart business owner, you’re likely aware of how important it is to adapt to technological changes in your industry. But, if you’re like many other company leaders, you may be hesitant to spend large sums on digital or tech-related updates. You’re more concerned with your bottom line in the current quarter, or with growing your sales before the end of the year. Thinking this way is understandable, but it limits your potential for long-term growth.
With the new Tax Cuts and Jobs Act, you could save tens of thousands (even millions) per year in taxes. These savings can be invested back into your company immediately. With the right tech strategies, you’ll be able to innovate within your industry. Your employees will work more efficiently; your customers will be happier; and, just as importantly, stakeholders will be more likely to invest. There are technological upgrades available for your business that can dramatically improve the way that people work together with data. These tech strategies can give you the edge that you need in a competitive industry.
Right now, a number of companies are already ahead of the curve. They’re calculated what they’ll save in taxes and they’re investing that money in upgrading their current systems. These investments include their , along with , Cloud, and Cybersecurity technology. Additionally, they’re switching to cloud solutions like Microsoft Office 365 or Dynamic 365, which ensure that their employees are working as efficiently as possible. Some companies are also incorporating Identity and Access Management technologies such as Okta and Azure AD into their business models, which help to protect their valuable assets from various security threats.
When you’re able to collect more data, you understand your customers better. The world of business is changing, and staying up to date with the latest tech trends is more mandatory than optional. If you want to be competitive, you need to ensure that you’re doing everything you can to invest in updating the digital side of your business.
Ready to make the new tax bill work for you?
We’re a top 20 and a Microsoft Gold Partner. We’ll work with you to determine what your needs are. We’re particularly skilled when it comes to the stack: this includes field service, finance and operations, talent, customer service, sales and marketing, and CRM and ERP. We’ll help you gain valuable insight into the needs of your customers and the inner workings of your business.
Drop us a line at info@journeyteam.com: we’ll send you a copy of our white paper, “What the Heck is Digital Transformation?” free of charge. If you’ve got questions about how to make the new tax bill work for your business, you can call us directly at 800-439-6456.
Please note: we’re not tax professionals. Be sure to contact your account for more information on how tax reform will impact your business.
JourneyTEAM is an award-winning consulting firm with proven technology and measurable results. They take Microsoft products; Dynamics 365, SharePoint intranet, Office 365, Azure, CRM, GP, NAV, SL, AX, and modify them to work for you. The team has expert level, Microsoft Gold certified consultants that dive deep into the dynamics of your organization and solve complex issues. They have solutions for sales, marketing, productivity, collaboration, analytics, accounting, security and more.
Very useful article regarding the tax changes as the tax season can be soon knocking on our doors.