2014-05-20 00:00:00 Technology English https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2017/05/moneyontech.jpg Are you spending too much on technology?

Are you spending too much on technology?

2 min read

In any Small Business, finances are always tight. While a budget and planning can help keep your spending in check, there is an attraction towards exceeding budgets and overspending when it comes to technology. Technology is one of the areas where you are tempted to spend a large part of your budget and you may feel that it is vital to your business’s success. It’s time that you examine your actual technology expenses, take a look at the following areas to ensure that you aren’t allocating too much of your precious resources to technology: 1. Processors: Unless you are a startup that is tech-focused it is unnecessary that you have a processor that is more than a dual core. While higher grade processors can be useful for heavy tasks such as video editing or working with large files, more often than not they are not an essential feature you should splurge on. 2. Wireless PC Accessories: While it might look great to have wireless, Bluetooth-enabled accessories for your keyboard and mouse. In the long run, these are probably visually pleasing accessories that you can avoid and save your company a substantial spending. 3. Software Upgrades: Within a few months of starting your business, you will be able to gauge what software you depend on and what software you can do without. Avoid buying bundled software as this will increase your expenses. It is also important that you look for software that has longevity and that you don’t need to update on a yearly basis. Even if the company releases a new upgrade every year, you should not feel the obligation to buy it. 4. Internet Connection: In the work place, speed and usage limits should be of a good quality. Do not automatically opt for the most expensive plan, assuming it is the best. Opt for the plan which seems to fit your needs on the speed and data usage front. Experiment with different offers to find the one that is the most economical for your business. Ensure that you are a business plan, Internet providers have different tariffs for home consumers and businesses, if you can on a home plan, any surplus in your data usage could come with a huge bill. 5. Maintenance and Support: It may be a good idea to have a maintenance contract for the technology that your business utilizes on a daily basis. Companies that hold these contracts will often give you replacement systems in case of break down, run monthly checks, perform data backups and also cover certain repairs. But these contracts can be expensive. It is key to examine the stipulations of the contract and run a cost versus benefit analysis to determine if the contract you are offered is worth it. 6. Vendors: You may have built up a rapport with vendors over the years, but it is important to take a step back and evaluate the amount you are charged by a vendor. A good exercise would be to check out your vendors’ competitors to see if you can strike a better deal to lower your spends on technology. It is of paramount importance that you do not blindly spend on technology. When faced with a technology purchase -do your research online, consult friends, family members and employees who are tech enthusiasts before you take on any purchases or sign any contracts.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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