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Buy?  Rent?  Lease?
Choosing a new business phone system that suits your business needs is the first step.  Once you have made the decision we urge you to call your accountant.  Your accountant can advise what is the best payment option for your business. 
Outright Purchase: Purchasing outright is great if cash flow is not an issue.  It can also help if wanting to reduce bottom line profit for tax purposes.
Rent: Rental of telephone systems has proved to be the most popular way of obtaining a phone system.  The advantages of renting a telephone system are that the business phone system does not become an asset of the company and the repayments are an expense and fully tax deductible.
Lease: Leasing offers a different option to owning the phone system, in effect you are paying for the business telephone system over an agreed time period with a small determined residual value paid for giving outright ownership at end of lease agreement to you the lessee.  This can be an issue if the value of the phone system is below the residual payment at end of lease.

The purchase price of the new business telephone sysem is treated as a capital purchase and is depreciated over the life of the asset.  The interest cost is also an expense, lease payments are tax deductible.

If your business expands during the leasing period and you need to upgrade your phone system, your business will need to either payout the existing lease (penalty may occur), get another lease or purchase the additional equipment outright.
Absolute Phone & Data are not accountants nor purport to be.  We strongly recommend that you consult your accountant or advisor for tax advice when purchasing your new telephone system.
Rental, Lease or Outright Purchase
will have different impacts on your business.
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Brisbane       07 3849 6291
Gold Coast   07 5592 1122

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07 3849 6291

Gold Coast
07 5592 1122
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