Resources: Productivity

It’s been a turbulent time for businesses over the last 18 months navigating through the COVID-19 pandemic. Many had to accelerate their remote work policies and practices. As a result, business IT infrastructures were forced to change rapidly, and Managed Service Providers (MSPs) have been in high demand. This trend is set to continue for many years to come. So, why do businesses choose to use tax deduction MSPs? Well, companies can save a lot of money by outsourcing their IT, especially through HaaS (Hardware as a Service).  Let’s look at the tax deduction benefits that come with using an MSP. 

Save money with HaaS from an MSP

Estimates suggest that businesses that successfully deploy managed services reduce their IT outgoings by up to 45%. One of the ways in which businesses can save is by choosing HaaS (Hardware as a Service). 

Reducing upfront capital expenses

The benefit of HaaS is that you reduce your upfront capital expenses. This means businesses can shift their budget allocations around and free up their cash flow. Essentially, it means that expenses come out of the operating expense budget (OpEx) instead of the capital expense budget (CapEx). As a result, managing monthly payments instead of large, upfront amounts is much more suitable for budgeting purposes. 

Businesses that use HaaS have an advantage when it comes to paying taxes. With HaaS listed as a service rather than a capital expense, it reduces the liability that tax causes. This means that businesses can get the equipment needed without running the risk of getting into debt.  

Access to newer technology

With limited finances, it’s hard for businesses to stay up-to-date with the latest technology. When using HaaS, Tax deduction MSPs have the responsibility to be sure the hardware will handle all your tasks efficiently. In the case that the hardware is no longer capable of delivering what companies need, the MSP will replace or upgrade the equipment. 

Access to maintenance 

One of the benefits of HaaS is that businesses have their IT systems maintained and looked after by experts. Often, smaller businesses don’t have the knowledge or expertise to deal with complex IT problems. Therefore, when they encounter a big issue, it tends to come with a large price tag to fix. With HaaS, the MSP maintains and manages all hardware for a fixed monthly sum.

Tax deduction MSPs – reducing costs with Section 179 

Working with an MSP not only benefits your business’ IT, but it also comes with great financial perks. When tax season rolls in, Section 179 allows businesses to gain tax benefits for purchasing tangible goods, including IT hardware and services.

Final thoughts about tax deduction MSPs

Using an MSP has so many benefits, it’s no wonder so many small and medium-sized businesses are now choosing this way of working. With HaaS, businesses can save money, have up-to-date and well-maintained equipment, and increase their tax deductions. Contact us to see how we can help your business do the same today! 

In our world of constantly evolving and varied cyber threats, many organizations consider cyber insurance to help them get back on their feet should they fall victim to a cyber event. Data breaches and ransomware attacks can also require specialized expertise and funds to deal with. For these reasons, many business owners choose to purchase cyber insurance for financial protection should an incident occur. Here are some reasons why you get denied cyber insurance  

Cyber security insurance used to be either very expensive or a cheap add-on to an existing policy. These days, it has its niche market and has become a critical need for many businesses. 

It’s worth noting, however, that cyber insurance does not solve all cyber-related problems, and it won’t ever prevent a cyberattack or data breach. Just like businesses with physical property need to put appropriate measures in place for security, so do companies with intellectual property. 

Unique cyber insurance for a unique business 

Generic business insurance doesn’t cut the mustard. It rarely even mentions data loss. Of course, there are overlaps in many cyber insurance policies, but businesses should have coverage that is as unique as their business. 

Beyond the basics, there are various additions and enhancements that policies can offer. As a result, you won’t know what to watch out for unless you’re aware of them. There are enhancements such as social engineering coverage (for employees who get duped into doing things), reputational harm coverage (often related to a security breach), and technology bricking (replacing technology equipment that is no longer usable after malware infection). Make sure you cover everything important to you. 

Cyber insurance prequalification  

Even if businesses prequalify for cyber insurance, it is still possible to get denied. Even if you have had cyber insurance in the past, it can still happen to you. There are many reasons for this.  

Poor plans for business continuity and disaster recovery 

Cyber insurance providers want a return on investment. If a provider believes your business cannot recover from a disaster, they may deny your application. Disaster recovery doesn’t just mean having backups. Businesses need adequate disaster recovery plans to make sure they’re able to survive after a cyber event. 

Poor account security – multi-factor authentication 

Businesses are often denied cyber insurance coverage due to the lack of multi-factor authentication. Many providers focus on account security before they offer a policy. 

Poor cybersecurity awareness 

Training employees is essential for maintaining appropriate cyber security. It’s no secret that employee involvement is one of the weaker aspects of business security. Training for employees is vital – and it needs to be updated as cyberattacks evolve. 

Inadequate endpoint security 

Many policies require more than antivirus software. Businesses often need endpoint detection and response tools that combine several security measures covering a range of detection and prevention techniques. 

Using an MSP to assist even if you have cyber insurance prequalification 

Being denied cyber insurance is a daunting prospect, and when a business gets rejected once, it’s even harder to get a policy. This roadblock is where your Managed Service Provider comes in.  

By using an MSP to help with cyber insurance prequalification, you’re making sure you have experts looking into everything with an experienced eye. Your MSP can help rectify the areas that need improving if you do not qualify for a cyber insurance policy.  

Final thoughts 

Even if you have a prequalification for cyber insurance, you can still get denied coverage. MSPs can help you secure cyber insurance and cyber insurance prequalification by assisting businesses to meet the necessary criteria. For more information, get in touch with us to schedule your free cyber security business review. 

In our evolving COVID-19 world, we’ve had to re-learn the way we act and think. What worked for our businesses in the past might no longer help us in the future. The pandemic caused a seismic shift for many small businesses. Those who learned to adapt to the changes thrived and survived. With COVID-19 not off the table yet, we’re now in a time where business owners need to be strong, flexible, and determined. That is why we will show you why you need a Managed Service Provider to handle your IT.

If we look back on the pre-pandemic world, we had it pretty good. Of course, life was never perfect, but we had it good compared to other times in the past – the world wars, the strife of the depression, and the hardship of the last housing crisis. At our fingertips, we had a smartphone containing answers to anything we wanted to know. Technology was our friend. 

Thriving and outsourcing 

The businesses that thrived in the pandemic, and came out of the other side, knew what they needed to do. They had a support system that made sure they knew what they needed to do to handle your IT needs. That support system? It’s your MSP. The Managed Services Provider who took care of things when they were on the shaky pandemic ground keeps businesses running.  

While every business owner would love to stand on their own two feet and be self-reliant, the truth is that the most successful enterprises do not. Instead, they outsource to experts so that they can work entirely on their business without having to worry about how to handle their or your IT. 

Relying on an MSP to handle your IT 

One of the main reasons why many companies outsource their IT support is for cost reduction. By outsourcing, you don’t need to worry about employing a person in-house. What’s more, unlike a single employee, an MSP is available all year round, 24 hours a day. They won’t take sick leave or go on vacation, for example. Imagine your sole IT employee is away in the Maldives when you have a cybersecurity issue! 

Another important reason why many companies prefer to rely on an MSP is due to the secure infrastructure. MSP data centers and IT infrastructure is more secure when compared to a standard IT system in a business. This extra layer of security means that network data is protected. Of course, business cybersecurity is something we can’t take lightly. 

Finally, using an MSP means your company can centralize all of its servers and applications within a managed data center. With centralized data, you can have storage, backup infrastructure, and virtual services as well. 

Do I need an MSP? 

Only you can answer that question. However, it’s probably a good idea if you’re a small business with many employees wearing more than one hat. One drawback is that small businesses often suffer from knowledge gaps concerning IT updates and developments. With an MSP, no employee will have to wear the “IT Wizz” hat – they can all concentrate on their roles. You’ll have complete peace of mind about your cybersecurity with IT experts on board. 

Small businesses often need more predictable budgets, too, and if this is the case, an MSP can help. Since the cost of IT changes frequently, it can be daunting for small businesses to even put a figure on their future IT expenses. In addition, budgeting for IT is not easy! One month you might not need anything at all, but the next, you might need to deal with a broken computer, a security issue, or need a crashed server. With an MSP, you can choose to pay a flat fee each month, which makes budgeting much more predictable. And because all of the systems are maintained, they last longer, which again reduces costs.  

Can you be self-reliant to handle your IT? 

Of course – and there’s nothing wrong with this if you know what you’re doing. If your company is in the IT industry itself, it might make sense to do everything in-house, for example. It’s up to every business owner to weigh the positive and negative aspects of overseeing your technology. As most owners soon discover, hiring an MSP to take care of the technology is often the most cost-worthy solution. If you’re interested in learning more about Managed Services, contact us today!