Managing a capital budget can be tough in the best of times – let alone during a global pandemic.
Inaccurate forecasting of costs and timings are common ways a business can experience uncertainty and financial risk.
That’s why renting instead of paying outright for capital items, like warehouse floor cleaners, can help free your cash and resources for other expenses.
Accountants and CFOs need steering
While accountants and CFOs might not be the primary owner of capex budgets, they are still significant stakeholders in the overall management and use of cash within a business.
That’s why they need your knowledge as a warehouse or operations manager to help them maximise their capital budget.
And if you can talk to them in a language they understand, then you’ll be in a better position to negotiate for the capital expenditure you need to manage your facility efficiently and improve productivity.
Consider renting equipment for greater financial certainty
If you don’t think the number crunchers in your company are likely to agree to a large capital expense such as buying cleaning equipment outright, bring them the option of renting the machines you need to improve efficiency and productivity in your warehouse or logistics depot.
A fixed-term rental agreement provides certainty. You’ll have fixed payment amounts that include scheduled servicing and operator training. You won’t have to deal with getting machines repaired if they break down. At Conquest, we also provide operator training as part of our rental agreements. Your staff will be trained by the people who know the machines inside and out, and at your premises. Your staff will learn to use the equipment in the environment where they’ll be cleaning.
By ticking the repairs, maintenance and training boxes, you’re building a fantastic business case for your company’s accountant or CFO. We’ve got their objections covered.
Fully tax-deductible rental payments
If you’re not purchasing warehouse cleaning equipment outright, then being able to claim every rental payment as an expense is also a significant cost-saver in the long term.
Conquest has flexible options and an extensive range of cleaning machines to suit the needs of your warehouse. There’s virtually no risk when it comes to hiring cleaning equipment from Conquest.
If you need some help putting together a business case that will steer your company’s accountant or CFO in the right direction, we’re here to help.
Talk to one of our friendly team members who will help you navigate the best way to maximise your EOFY opportunities and beyond.
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* This advice is of a general nature. Please speak to your tax professional for guidance tailored to your situation.