Weighing the Benefits of Accounting Software Leasing

Leasing accounting software is a popular alternative to buying a system outright that many small, mid-sized and large scale businesses are now choosing. There are several reasons and benefits of accounting software leasing, one of the most important one being that it cuts down on the initial costs. ERP software and small business software can be expensive to say the least. A mid-sized company can expect to pay up to one million dollars on just the software. Furthermore, many businesses will also invest in hardware, consultation, training and installation of the new system. This can all add up, and for a small business that is just starting out, this can also be incredibly overwhelming. 

To determine if buying small business software outright or leasing to own is right for your business, check out some of the benefits of accounting software leasing. 

The Benefits of Accounting Software Leasing 

• One of the benefits of accounting software leasing is that is provides a flexible way to pay for your software, especially during these tough financial times. Many businesses are not willing to spend next to a million dollars outright on software. With the option of leasing small business accounting software, you are able to overcome budget limitations and make a more accurate return on investment calculation. The way software leasing usually works is that a company will pay an upright fee and then annual payments over time. That way, instead of spending, say $500,000 in 2009, they can paying $50,000 for the next ten years and thus able to better see their return on investments.
• Another benefit of accounting software leasing is that all payments are negotiable. Most accounting software is available for lease if it costs over $25,000 and you can choose how long to pay the system off. Most payment plans will run from three to five years and can work with monthly or yearly plans. This flexibility is hard to beat.
• Finally, leasing still means that you get the same services as if you were to own the software. The only thing you are missing out on is the exuberant upfront payment. You still get the installation, the state of the art software, the training and the benefits of the system without the financial fear that comes along with it. 

Additional Factors to Consider when Leasing Accounting Software

When it comes to leasing accounting software, you need to decide where you want a capital lease or operational lease. Although most companies work in capital lease, some have both. You also need to determine what will be included in your accounting system lease such as customization, training and consulting. Leasing allows you to bundle all of these services up into one easy annual payment. 

All large software companies offer financial leasing on their products including Sage, Microsoft and Quick Books. However, it can often be hard to determine which lease is right. Start by filling out the form at the top of this page where you will obtain accurate information on leasing accounting software and comparisons on the different companies.