Top 3 Reasons to Purchase IT Hardware in Q4

As the year winds down, businesses are taking stock of their IT needs and planning for the future. Each year, more CFOs and business owners are choosing to purchase IT hardware in the 4th quarter, and for good reason. Here are three compelling reasons for this trend.

Reason 1: Navigate Supply Chain Challenges

• Avoid Potential Hardware Shortages Due to Port Strikes: Recent global logistics issues, including port strikes, have disrupted supply chains, leading to potential shortages and delays in IT hardware procurement. By purchasing IT hardware now, you can avoid the risk of long lead times and inflated costs that might arise if you wait until next year. Securing your equipment in the 4th quarter ensures your business is well-prepared for the upcoming year, minimizing operational disruptions caused by supply chain issues.

Reason 2: Maximize Tax Benefits

• Lock in Tax Advantages From Section 179: Purchasing IT hardware in the 4th quarter allows businesses to talk to their tax advisors about taking advantage of tax benefits such as Section 179, which permits the deduction of the full purchase price of qualifying equipment. Additionally, accelerating hardware and software purchases before the end of the tax year can help reduce taxable income for the current year. This strategy not only optimizes your financial reporting but also enhances your tax liabilities management.
• Start Depreciating Assets Sooner: By acquiring equipment in the 4th quarter, businesses can start depreciating those assets in the current year, rather than waiting until the next year. This approach helps optimize financial reporting and tax liabilities, providing a more accurate reflection of your company’s financial health.

Reason 3: Take Advantage of Vendor Promotions

• Year-End Vendor Discounts and Promotions: The 4th quarter is a prime time for vendors to offer deep discounts, rebates, and promotional deals as they aim to meet their year-end sales goals. This creates an excellent opportunity for businesses to acquire necessary IT equipment and software at lower prices than they might find in the first quarter.
• Stay Ahead of Vendor Price Increases: Many software vendors and hardware suppliers implement price increases at the start of the year, often due to inflation or annual business cycles. By purchasing in Q4, companies can lock in current pricing and avoid higher costs when renewing or upgrading in Q1.

Sourcepass Can Help

Purchasing IT hardware in the 4th quarter offers numerous benefits, including tax deductions through Section 179, avoiding potential hardware shortages, and securing the best prices available.

Talk to your Client Success Manager about the best places to invest in your business through technology purchases or speak to one of our IT specialists to learn how Sourcepass can help.