Section 179 of the IRS tax code allows businesses to write off the total purchase price of any qualifying equipment or software in the year it was purchased or financed. This deduction was designed to help small businesses invest in themselves and, in turn, boost the American economy. If you’re a small business owner considering leveraging Section 179 while buying new tech for your business, you could realize a lot more than tax savings.
New, innovative technology can revolutionize a business. From fostering innovation and growth to boosting efficiencies and reducing errors, the positive impacts seem endless. In this blog, we’re going to explore three main benefits: productivity, security and morale.
Boosted Productivity
The modern business day is no longer restricted to 9-5. Our social emphasis on work-life balance and recent world events have forced new and innovative ways to get business done. Technology has answered the call and is driving a transformation in how, where and when we work.
Cloud-based software allows people to access files and applications anytime and anywhere with an internet connection. It’s no longer critical where people are physically located. Today’s technology provides the flexibility to allow teams to communicate and collaborate from home, from the office or from a doctor’s appointment.
Employees with the right technology can:
Chat, share files and collaborate through virtual meetings
Get more work done by doing it around their schedule
Instantly connect with teammates and customers 24/7/365
Strengthened Cybersecurity
Strengthened Cybersecurity
Cybercriminals love outdated technology. The weaker your security front, the easier it is for them to get inside your network. And given the rise of personal device usage and the increased frequency and sophistication of cyberthreats, business owners looking to protect themselves can’t be too careful.
It’s never too late to identify and address potential vulnerabilities. You can hire a managed service provider to perform a cybersecurity assessment, or you can research tools online. Check out the Cybersecurity & Infrastructure Security Agency’s site for more information. In the meantime, consider these best practices:
Maintain antivirus, malware and firewalls
Secure all laptops and mobile devices
Implement advanced email filers
Enable multifactor authentication (MFA)
Regularly back up business-critical data
Boost Staff Morale
Aside from decreasing output and jeopardizing data, outdated technology has also been shown to reduce staff morale. Frustration multiplies when people spend too much time waiting on their technology. Waiting for web pages to load … waiting for reports to generate … “tech waiting” accounts for low morale and loss of productivity. And numerous studies show that happy employees lead to happy bottom lines.
If you’re serious about buying new tech for your business to boost employee satisfaction, start with your team. Ask your staff what tech is slowing them down and if they have the tools to collaborate and problem-solve. You might be surprised at what you hear.
In conclusion, the right technology can help us work smarter on a more flexible schedule while keeping our teams connected, protecting our data and much more. It’s worth taking a look at Uncle Sam’s end-of-year tax benefits, which can make new tech purchases even more attractive.
If you want to take advantage of the Section 179 deduction for the tax year 2022, you’ll need to act soon. The 2022 deduction applies to equipment in use before the end of 2022. And finally, be sure to consult with a tax professional to learn how Section 179 may relate to your specific business. Happy Holidays!
For many businesses, tax season can be the most stressful time of the year. Fortunately, there are technology tax deductions out there, including Section 179. Not only can this deduction help businesses save on expenses — it can also help them grow.
The Section 179 tax deduction allows all businesses to deduct the full purchase price of qualifying equipment or software bought, financed or leased during the tax year from their gross income. This deduction helps ease tax burdens (especially for small businesses) and encourages companies to remain competitive in their market by buying the new technology they need.
Let’s explore how you can take advantage of Section 179 for the remainder of the year.
1. What Products Qualify?
Luckily, most tangible goods used by American businesses qualify for technology tax deductions. These include:
Purchased, financed or leased equipment
Workstations, laptops, tablets or smartphones
Servers, printers, routers and network security appliances
Off-the-shelf software
There’s no need to put off buying new equipment for your office until the end of the year. Instead, you can make the necessary investment at any point and still reap the benefits provided by the U.S. government.
2. Are There Any Limitations?
Section 179 does come with a few limitations. The first is that qualifying equipment and software must have been purchased, financed or leased between January 1st, 2022, to December 31st, 2022.
Secondly, the items must be used for business purposes more than 50% of the time. To determine the monetary amount eligible for technology tax deductions, simply multiply the cost of the qualifying product by the percentage of business use.
Lastly, the amount you can deduct for 2022 stands at $1,080,000. This also limits the total amount of equipment purchased to $2,700,000 in order to qualify. After this limit, the amount phases out dollar for dollar, or the deductible amount begins to decrease.
3. How Can You Get Started?
Once you know which products you can deduct within your limit, you can start the deduction process. When you do your taxes, you will use Part 1 of Form 4562 to claim your deduction. On this form, you’ll list the qualifying products and their costs up to the deduction limit.
Take the Next Step
With technology tax deductions like Section 179, your business can feel more confident that the new technology you invest in maximizes your costs. And, by using the most cutting-edge technology, you can transform your business operations to be more efficient, productive and in line with the modern work experience.
If you’re interested in learning more about what technology your business could benefit from and help you qualify for year-end savings, consult our IT experts. We can help ensure you don’t miss out on savings and leverage the best equipment out there.
If you want to learn more about IT tools and strategies, check out additional blogs in our resources section.
The information provided in this blog is for educational purposes only. Consult your tax professional for information on how Section 179 may relate to your business.
October marks the start of Cybersecurity Awareness Month 2022, which is designed to help businesses protect themselves from online threats and bring overall awareness to cybersecurity. This month is dedicated to creating tools and resources that businesses can utilize to provide tips and training to better inform their customers and employees. What started in 2004, and continues now to build momentum, Cybersecurity Awareness Month portrays an over-arching theme of focusing ultimately on the “people” part of cybersecurity.
Focusing on the human nature side of cybersecurity ensures that all individuals and organizations make the right decisions when it comes to being safe online. There are many ways that you can keep your data protected. Check out these four best practices that you can leverage to improve your cyber awareness.
Enable Multi-Factor Authentication (MFA)
Also known as two-factor authentication, MFA is a security measure that has become more common amongst businesses. When initiated, MFA will prompt a user to utilize two security features that can prove their identity. This feature can make it twice as hard for cybercriminals to access sensitive data.
MFA can include:
• A biometric identifier like a fingerprint or facial recognition.
• An extra pin that is prompted for entry after a password.
• A security question set up by the user.
• A code that is either texted or emailed to the user.
• When in doubt, if available, use MFA everywhere to secure your network.
Strengthen Your Passwords
Passwords are the digital keys to your cyber-house and are critical to protecting your online security. The truth is passwords are your first line of defense against cyberattacks.
• When creating passwords, it’s key to keep these three tips in mind:
• Make them long: Each password should be about 12 characters long.
• Make them unique: Never reuse passwords, nor should they look alike.
• Make them complex: You should use a combination of uppercase letters, lowercase letters, numbers and special characters.
• If your password is long, unique and complex you won’t need to change it, unless you are notified that an unauthorized person has accessed it, or your password was compromised in a data breach.
Don’t Click Suspicious Links
Hackers use scams like phishing attacks to send bad links via emails to try and extract sensitive data from unsuspecting individuals. A phishing scam can even install malware on computer systems. When in doubt, if it looks “phishy,” don’t click on it.
Update Your Software
Always keep your software up to date when updates are available. These updates can generally provide general fixes and new patches to protect your business against cybercriminals. If you have the chance to automate your updates, don’t hesitate to do so. By updating your software, you can ensure that you are one step ahead of hackers.
How We Can Help
Everyone can make a difference during Cybersecurity Awareness Month 2022 by getting involved and learning best practices. If you’re unsure where your cybersecurity stands or could use additional training to help better prepare your staff, contact us. Here at Nitor, we can get your cybersecurity strategy in place with an effective risk evaluation.
If you want to learn more about cybersecurity awareness and training, check out additional blogs in our resources section.
Cybercrimes are becoming more rampant worldwide as cyberattacks like ransomware, malware and phishing become commonplace. With global cybercrime damage amounting to $16 billion a day, it’s important for businesses to have cyber readiness to avoid financial damage to their company.
Fortunately for businesses, becoming cyber ready is easier than it seems. There are simple, proactive steps employers can take to increase cyber awareness for their business. Moreover, the U.S. government has set up The National Institute of Standards and Technology (NIST) to provide additional cybersecurity best practices.
Let’s take a look at how you can start protecting your business today by becoming cyber ready.
Top Three Cyber Readiness Practices for Employers
1. Develop a Culture of Cyber Awareness
The best way to become cyber ready is to create a culture where all employees are well-versed in cybersecurity. In doing so, employees become more knowledgeable about what constitutes a cyberthreat and can make safer decisions when working. Beyond basic training on cyber readiness, you can also keep up with and share cybercrime trends with staff, so they’re aware of the latest threats to avoid. Further, you can create a checklist of common cybercriminal tricks used when a cyberattack is committed for employees to refer to when they are unsure of communication online.
2. Follow the NIST Checklist
The NIST Cybersecurity Framework was created as a voluntary set of cyber practices for businesses to follow to reduce their risk of cyberattacks. As part of the NIST protocol, there are five key functions:
Identify: Identify current cyber risks and which processes and assets need protection.
Protect: Implement safety procedures to protect sensitive information and necessary assets.
Detect: Develop test processes to detect any cyber events against your system.
Respond: Create a response plan to put into place in the event of a cyberattack.
Recover: Restore any disturbed services and communicate the attack with necessary parties.
3. Perform Continuous Software Updates
Lastly, cyber readiness does not end once you have the proper training and security procedures set up. To be fully protected, you’ll need to continuously update your systems and practices. For instance, you can establish automatic updates to occur when necessary. Moreover, you can create a system that requires employees to change their passwords during a specified timeframe. As every business is unique, which updates and procedures to follow will depend on your needs and goals.
The Takeaway
Cybercrimes are not going away anytime soon. In fact, they are expected to increase in frequency by next year. Is your business prepared? Now more than ever, businesses need to take the proper steps to protect themselves in the event they are faced with a cyberattack.
If you’re unsure where your current cyber readiness stands, you can undergo a cyber readiness assessment with Nitor Solutions. We can help you better understand what steps your business should take to be cyber ready.
If you want to learn more about cyber readiness, check out additional blogs in our resources section.
The cybersecurity insurance market has grown exponentially in recent years, and it’s only expected to continue expanding. In fact, by 2028, the market is expected to be valued at a staggering $26.24 billion. It’s clear that as cybercriminals become more adept, businesses of all types are opting for more financial protection against the impacts of cyberattacks.
However, just as the market is growing, there are also more governmental and public efforts to tighten regulations surrounding cybersecurity insurance. These endeavors aim to help insurers and companies better understand risk management in the face of new cyberattacks. They also strive to outline what should be included in insurance policies.
To understand where cybersecurity insurance coverage stands today, check out these top trends the market is currently facing.
Top Four Cybersecurity Insurance Trends to Look Out For
Increased Premiums
Perhaps the most notable trend in cybersecurity insurance coverage is the jump in premium costs. In 2021, premium prices grew by 74% alone. The rise in premiums is due to the greater demand for cybersecurity insurance as more organisations face new and evolving cyberattacks. To combat high-cost premiums, many businesses are taking more preventive measures to avoid possible attacks. For instance, companies are undergoing cybersecurity awareness training and implementing stricter security controls in their systems.
Greater Emphasis on Cybersecurity Readiness
As the number of claims filed rises, so does insurers’ interest in a company’s risk history. After all, insurers want to avoid hefty payouts. In response, insurers are requiring businesses to increase their cybersecurity readiness by answering more questions and completing more documentation on their risk management history. For example, insurers are asking businesses about their incident response plans, prior history with breaches, and whether they’ve undergone any risk evaluations of their current cybersecurity.
Deeper Scrutiny of Vendors
As part of risk management, many insurers are taking a deeper look into businesses’ vendors. Insurance companies want to know how much access these vendors have to a company’s network and what privacy and security protocols they have in place. Vendors who have access to critical, private information have a greater risk of exposure if they are not following the same strict practices as the organization.
More Involved Government Regulation
Lastly, governments are becoming more involved in cybersecurity insurance regulation. This is largely due to the vast increase in cyberattacks, particularly ransomware, malware, and phishing. In the United States, more bills and resolutions are being introduced to provide a framework for addressing cybersecurity insurance coverage policies. Similarly, on a global scale, the European Commission has proposed new regulations that call for regular maturity assessments and plan implementations around cybersecurity.
Securing Cybersecurity in an Ever-Evolving World
With cybersecurity, businesses have two ways to optimise their efforts. The first is to take preventative measures by developing a risk management strategy and identifying and addressing security vulnerabilities in their system. The second is to examine cybersecurity insurance options. While costs are increasing, the demand for cybersecurity insurance coverage is justified. Cybercriminals will only get smarter, faster and stronger at breaching systems and causing financial disasters. At Nitor Solutions, we’re here to help you with both processes.
If you’re looking to learn even more about all things cybersecurity, check out more of our blogs in our resources section. Sign up for our newsletter to keep up with trending technology topics!
In today’s digital world, we rely on our business technology more than ever. That’s why you should be doing everything you can to protect your data and technology. In order for your business to stay protected, you need a disaster recovery plan.
According to the Federal Emergency Management Agency, one in five businesses doesn’t have a disaster recovery plan. That means that 20% of businesses would struggle to recover if they experienced a disaster. These disasters can range from storms and earthquakes to cyberattacks, network outages and human error. That’s why it’s so important that you have a plan in place for these scenarios.
Let’s discuss a few ways to prevent a disaster from impacting your business.
Four Simple Steps to Creating Your Disaster Recovery Plan
Step 1: Run a Business Impact Analysis
Run a business impact analysis on your current processes. This analysis is perfect for finding any gaps in your business. That way, when you see those vulnerabilities, you can get the information you need to create a disaster recovery strategy.
Step 2: Identify Your Critical Business Functions
Based on the results of your analysis, your next step should be to identify and document your critical business functions. With your analysis, you should now be able to see how your business would fare if it were hit by a disaster. From there, you can identify what parts of your business processes need to be improved.
Step 3: Begin Developing Your Disaster Recovery Plan
Now is when you start developing your disaster recovery plan. For your plan to be successful, you should organize your recovery teams, create points of contact in the event of a disaster, write the procedures needed in the event of a disaster and communicate these procedures with your entire team.
Step 4: Test Your Plan & Train Your Team
Finally, test how your disaster recovery plan works. Testing your plan with mock scenarios is crucial to make sure that everything is solid with no gaps. Once that’s figured out, it’s important that your team is trained on these procedures so that they’re also prepared if a disaster strikes.
Final Thoughts
A solid disaster recovery plan can give you peace of mind knowing that your data is safe and secure.
There can be many challenges to developing your own plan, and it can be a extremely time-consuming task. That’s where we come in — our experts can assess your IT infrastructure, identify vulnerabilities, address the gaps, develop a disaster recovery plan and test that plan for you. At Nitor Solutions, our IT experts are ready to help you develop a plan to keep your business data safe and backed up.
Looking to learn more about disaster recovery and other cyber tips? Check out more of our blogs in our resources section.
