What Are the Advantages of Leasing Photocopiers

Many business owners have at one time or another had to deal with office equipment breaking down, and being unable to afford its immediate replacement. Renting or leasing equipment serves in such circumstances, but leasing office equipment has grown in popularity as an alternative to buying equipment outright, and for some good reasons, according to specialists in photocopier leasing in Oxford, which are listed below:

Economic advantages

It does not require major initial investment, simply “pay per use”.

It does not tie-up company resources in equipment that needs continuous renewal.

Once the photocopier reaches the end of its useful life, it can be changed for a completely updated model of the same (or superior) characteristics.

It is not reflected in the balance sheet of the company, neither as a fixed asset nor as a liability, offering greater control and flexibility over the accounting for fixed assets.

The possible imbalances between the legal amortization periods and those of actual use of equipment are eliminated.

The company eliminates variable costs (maintenance, parts, insurance, etc.) in exchange for a fixed monthly cost, allowing for the optimal management of its expenses.

It reduces the administrative expenses of control of the services and expenses inherent to the assets under the leasing regime.

Technological advantages

Ability to adapt quickly and functionally to the constant changes demanded by evolution in the technological sector.

Tax advantages

The rental of photocopiers is, for companies and individuals with economic activity, a fiscally deductible expense.

The renting is not classified as a financial operation but commercial, and its control is included in the accounting plan and Corporate Tax legislation.

The total of the taxable base of the renting quota is registered in the Profit and Loss Account, recovering the corresponding VAT in many cases.

Financial advantages

It allows the freeing up of valuable financial resources: the cash flow derived from a renting operation is distributed throughout the operation and not at the beginning, as in the case of purchase of equipment.

This operation improves the liquidity of the company and allows it to benefit from the leased equipment without having to borrow.

Because it is not owned by the client, a photocopier which is leased does not form part of the fixed assets of the lessee company.

Easy accounting related to a leasing operation.

Human resources advantages

The outsourcing of management (maintenance, parts, repairs, insurance, etc.) allows the company to rationalize its resources and allocate them to business growth activities.

The company that provides the renting service assumes the integral management of the photocopier.

Corporate image advantages

The continuous renewal of the printing equipment with the latest and most efficient models ensures the company transmits a more professional image.