Costs of Implementing an ERP System

Costs of ERP Implementation

Costs of Implementing an ERP System

What to Expect When Implementing an ERP System

Enterprise Resource Planning (ERP) systems are powerful tools that streamline business operations by integrating various functions like finance, inventory, and human resources into one cohesive platform. While the benefits of an ERP system are undeniable, it’s important for businesses to consider the costs involved in implementing one.

  1. Software Costs: The most obvious expense is the software itself. ERP solutions vary greatly depending on the complexity and the size of your business. Prices can range from a few thousand dollars for basic systems to hundreds of thousands for large-scale, enterprise-level solutions.
  2. Customization and Integration: Most businesses need some level of customization to tailor the ERP system to their unique needs. This can include integrating the system with existing software tools, databases, or third-party applications. Customization and integration costs can add up quickly, depending on the complexity of your business operations.
  3. Training: Employees need to be trained to use the new ERP system efficiently. Training costs can be substantial, particularly for large teams or complex systems. Factor in both the cost of training materials and the time spent away from regular duties to learn the system.
  4. Implementation and Consulting Fees: ERP implementation often requires external consultants or specialists to ensure the system is set up properly and the business processes are aligned. These fees can range from a few thousand to tens of thousands of dollars depending on the project scope.
  5. Ongoing Maintenance and Support: Once the ERP system is up and running, ongoing support and maintenance are necessary to keep the system updated, secure, and functioning smoothly. Many ERP vendors charge a recurring annual fee for this service.
  6. Hidden Costs: It’s easy to overlook hidden costs such as data migration, system downtime during implementation, and potential disruptions to daily operations. These indirect costs can affect productivity and should be accounted for in your budget.

While ERP systems offer long-term benefits in terms of efficiency and scalability, their initial implementation costs can be significant. It’s crucial to carefully plan and budget for both the direct and indirect expenses to ensure a successful deployment.

Financing for ERP System Implementation

Given the large upfront costs of purchasing and implementing ERP systems, financing could be appropriate. Both the software and the implementation costs can be financed for up to 60 months turning the upfront costs into fixed, monthly payments.

Contact Dimension Funding for more information.

The High Cost of Implementing an ERP System and How Financing Can Help

The High Cost of Implementing an ERP System and How Financing Can Help

Implementing an Enterprise Resource Planning (ERP) system, such as SageIntacct, NetSuite or ODOO, can be a game-changer for businesses looking to streamline operations and enhance efficiency. However, the cost of implementing an ERP system can be substantial, often running into tens or even hundreds of thousands of dollars. This investment includes not only the software and hardware but also costs for customization, training, and ongoing support.

For many businesses, especially small and mid-sized enterprises, these upfront costs can be a major barrier to adopting an ERP system. Fortunately, there are financing options available that can help spread the expense over time. With financing plans offering terms of up to 60 months, companies can manage the financial strain of implementation by paying in affordable monthly installments.

By securing financing for ERP implementation, businesses can balance their budget while still gaining access to the powerful tools that drive long-term growth and efficiency. Whether through loans, leases, or vendor-financed programs, breaking down the cost into manageable payments ensures that the benefits of an ERP system are accessible without compromising cash flow.

With the right financing plan, companies can embark on their ERP journey without the burden of upfront costs, making it easier to stay competitive and position themselves for success.

Hidden Costs of Not Financing your Legal Practice Management Software

legal practice management software financing
legal practice management software financing

Hidden Costs of Not Financing your Legal Practice Management Software

In today’s competitive legal landscape, investing in legal practice management software is no longer a luxury—it’s a necessity. From streamlining operations to improving client service, the benefits are undeniable. However, many law firms hesitate due to the upfront costs associated with acquiring such software, including hefty subscription fees, implementation, and training expenses.

The true cost of forgoing financing for legal practice management software often goes beyond just these immediate expenditures. By choosing not to finance, firms may feel the financial strain of large one-time payments, disrupting cash flow and hindering other investments. But what if you could spread out those costs into manageable monthly payments?

Benefits of Financing your Law Firm's Practice Management Software

Financing your law firm’s legal practice management software allows you to break down the substantial upfront costs into predictable monthly payments, aligning with your firm’s budget and cash flow. Instead of facing the burden of paying large sums all at once for both the subscription and necessary implementation and training, financing allows you to pay over time. This not only makes the software more affordable but also ensures your firm has the resources it needs for other important areas of the business.

Moreover, financing gives your firm the flexibility to access premium software features that might otherwise be out of reach due to cost barriers. With a tailored financing plan, you can focus on the long-term benefits of improved operations without sacrificing your financial stability in the short term.

In conclusion, while the upfront costs of legal practice management software may seem daunting, financing can turn this challenge into an opportunity. By spreading the payments over time, law firms can access top-tier technology without the financial strain of large initial investments, making the software a smart, sustainable choice for growing practices.

4 Improvements That Will Modernize the HR Software Industry

HR Software Innovations
HR Software Innovations

4 Improvements That Will Modernize the HR Software Industry

Companies from all walks of life and every corner of the globe are starting to realize the fact that the people who work for them are their most important asset. Workplace behavior specialists like Simon Sinek have been advocating labor force optimization for years and the fruits of their labor are starting to finally get realized.

With companies pouring money and resources into their Human Resource departments, the demand for specialized software has skyrocketed. As an HR software manufacturer, being cognizant of the changes taking place or the general trajectory is incredibly important if you want to thrive in an increasingly competitive niche.

In this article, we’ll elaborate on 4 ways the industry is changing and their outcomes. Some of these ways might be predictable, others might be newer developments but all of them will inevitably dictate how well you stack up against competitors, in 2021 and beyond.

The Direction the Industry Is Heading In

HR software can basically be divided into core functionality and service-based programs. Core functionality includes recruitment, maintenance, talent management, workforce planning, analytics, etc. An emphasis on service would include training and consulting, support and maintenance, implantation, integration, etc.

It’s important to understand this distinction as we dive into the 4 ways the HR software industry is progressing in 2021:

1. Hiring Optimization

Most people assume that the HR department only deals with managing employee concerns and making sure compliance is regulated. A lot of the specialized software being developed is optimized for these processes alone. However, a hugely important aspect of HR management is hiring new talent.

As most applications for jobs are submitted online either through email or the company website, ATS software has become essential. The incredible expansion companies are doing and the number of new businesses opening will make this importance even more absolute.

ATS software helps categorize applicants according to their information. The software currently available does the job well, but there are definitely improvements that can be made on all fronts.

For one thing, more sophisticated search algorithms should be developed to ensure that no good applicant is filtered out for no reason. Another aspect that companies are interested in improving is the management of filtered applicants with a ranking system or more streamlined categories. This will make the manager’s jobs much easier.

The competition for this particular aspect of HR software is still relatively low so specializing here and making intuitive upgrades could prove to be a game-changer over the course of the next few years.

2. Artificial Intelligence

No list on the future of any industry would be complete without mentioning Artificial Intelligence in some capacity. Some fear it, some revere it, but everyone agrees that AI will undoubtedly help push humankind into the future. And this includes the HR department of course.

The potential of AI assisting in the various aspects of Human Resource management is very promising, especially in the recruitment process. This ties into our previous point of specialized software integrated with AI helping managers make better hiring decisions. The machine could analyze applicants and check their qualifications and past experiences to give a ranking order for example.

Another big advantage of AI that experts stand by is its ability to streamline redundant, time-intensive tasks. These tasks might involve surveys or questionnaires and having to pour over hundreds of them might not be possible for several people let alone one.

Advanced AI systems could, in theory, analyze the documents efficiently and discard the empty ones. Or maybe it could search for certain keywords like “unsatisfactory” or “disappointed” to pinpoint the most pressing problems.

Obviously, the technology isn’t good enough at this point in time to make 100% foolproof decisions. We’re still several years away from that being a reality. But the advancements taking place are certainly promising and implementing AI will for sure be a huge advantage if not a necessity in the future.

3. Specialized Training

One advancement that isn’t necessarily software-based is the specialized training that is required to run these advanced systems. This is a neglected aspect of the industry at this point.

If you compare the HR software industry to something like the manufacturing industry, a big difference is the fact that many of the companies making the machines have specialized training programs for their customers to take full advantage of their products.

As HR software continues to advance, the need for specialized training will rise with it. This could range anywhere from simple video tutorials to full weekend-long workshops to teach managers and their teams how to utilize the software to its full potential.

This will slowly become an industry standard and not including it along with your bundled software would be a big disadvantage. Many companies have started working on their training curriculum and their competitors in the niche should look into taking the next step themselves.

4. Confidentiality

Data confidentiality is incredibly important. As more and more data privacy laws are enacted, the calls for companies to respect their employee’s information are loud and will continue to grow louder.

The HR department is unique in the sense that it has tabs on every worker in the company. This simply comes with the territory and having to keep track of this information is a part of the department’s job. Sensitive information like their health problems, contact details, addresses, social security numbers, etc. are all regulated within HR software.

The responsibility of the people making the software has therefore increased too. Better encryption, more secure servers, more transparent terms are going to become industry standards very quickly. Other features that many companies have begun offering include secure file storage solutions, CSRF protection, automatic data backups, cryptographic password protection, and much more.

These features give the HR managers confidence in your service and make it easy for them to guarantee that their employee’s data, and welfare, is in good hands.

Financing for HR Software Solutions

There are many other trends that are revolutionizing the HR software industry but the ones we’ve mentioned above are the most relevant and the most influential. Understanding this importance will enable you to add them to your service or update their usefulness for everyone involved. The future of your business could quite literally depend on it.

Many HR Solutions can have expensive upfront costs including the software, implementation and training. Dimension offers financing to turn the entire HR Solution project into monthly payments over the term of the subscription.  HR software financing is a great way of making a large HR Software project affordable. 

Finance Software Training & Implementation Costs

Financing for Software Implementation & Training Costs
Financing for Software Implementation & Training Costs

Finance Software Training & Implementation Costs

Computer software has become an essential part of a modern business’s arsenal of tools. The increase in efficiency and the ability to implement new techniques is game-changing for almost everyone.

While many consumer-grade software packages are very affordable, professional corporate-grade software has a much steeper cost of entry. The costs don’t necessarily stop when you buy the software either.

In this article, we’ll go over why investing in high-quality software is a good plan of action, some hidden costs that you may not have considered, and how financing enterprise software through companies like Dimension Funding is a solution for all of this.

Benefits of Enterprise Software

Software is a very vague term as there are so many different types and permutations but for the most part, most businesses will use some form of specialized software, like Enterprise Resource Planning (ERP) or CRMs.

The benefits that you open yourself up to by choosing software like ERP, CRM or most types of enterprise software are immense:

  • Potentially reduced costs as software can effectively replace or support many different operations
  • Improved reporting and planning capabilities
  • Macro visibility (inventory management, schedules, etc.)
  • Improved efficiency
  • Data security
  • Easier departmental collaboration capabilities
  • Modular Scalability (software dependent)

Again, more specialized software created for a specific type of work will have even more to offer but these are general improvements almost anyone will see by implementing software into their workflow.

The Hidden Costs of Purchasing Enterprise Software

Now that we’ve had a brief overview of the benefits software can provide, let’s get into the associated costs. This will be software-dependent but for the most part, you will have to financially account for:

  1. Software acquisition costs
  2. Software implementation costs
  3. Software training costs
  4. Software maintenance costs
  5. Hardware costs
  6. Software Renewals

Let’s look at these in a little more detail:

1. Software Acquisition Costs

When we talk about acquiring software, many are annual subscriptions. Many software companies use this model to price their services and chances are that the software you’re looking for will require you to pay them a certain amount on an annual basis.

2. Software Implementation Costs

Advanced software is complex and difficult to set up so hiring a consulting firm to implement it on your company’s computers and devices is very important. Smooth implementation at the start will save you from a myriad of problems and headaches in the future.

3. Software Training Costs

When the software is set up, your staff will have to undergo training to get the most out of it. This is usually provided by the software makers themselves, but third-party trainers and weekend training camps are always an option you can rely on.

4. Software Maintenance Costs

Unlike other services or products, computer software is incredibly technical and needs constant updates and maintenance to run smoothly. There are bound to be, so companies need to ensure that they have the contacts to troubleshoot issues quickly.

5. Computer Hardware Costs

Some software might require special computers or peripherals to run efficiently. This can be a very steep cost as cutting-edge technology is not cheap, and depending on how current your devices are, your entire ecosystem might need to be replaced. For enterprise software, additional servers may be required.

6. Enterprise Software Renewals

You can also finance Enterprise Software Renewals , including implementation, training and hardware costs. You can turn the entire software renewal cost, including implementation, training and hardware, into fixed monthly payments. 

The Private Financing Solution for Software, Implementation, Training and Hardware

Private financing offers a solution to all this. Third-party vendors like Dimension Funding will help you finance your entire software subscription (or purchase if it’s a bespoke option) with easily manageable fixed monthly installments.

But what makes this a great option for businesses is the fact that you can easily finance all associated costs even after the beginning of your software subscription. Flexible financing allows you to continually add software-related costs to your principal as and when you need it up to the term of the subscription.

This is very helpful for several reasons chief amongst which is the peace of mind you have knowing that there won’t be any unpleasant surprises or costs waiting for you down the line. This helps you manage your finances better and can improve your business’s overall cash flow.

Some other advantages of privately financing software through Dimension Funding include but are not limited to:

  • Up to $500k in software financing with no financial documents required. (Over $500k does require financial documents.)
  • Hardware like computers, peripherals, servers, etc. can be included in your financing.
  • Annual subscriptions get turned into easy-to-pay and manageable fixed monthly installments.
  • Helps free up working capital for you to invest elsewhere.
  • Eligible on a wide range of software ranging from Microsoft to professional EHR, ERP, and CRM systems, HR and Accounting software, medical and EHR / EMR software and almost any type of subscription software.
  • Easy online application process with a quick turnaround time.

If you’re a third-party vendor selling software to customers, then all these benefits still apply. You’ll be able to offer them all these guarantees worry-free, and all the associated costs your clients face will be easily managed.

Making smart investments and getting positive ROIs on them is key for long-term business growth in all industries. Investing in high-quality software has the potential for incredible results, and with smart financing, you won’t have to spend an arm and a leg to get them either.

If you’re interested in learning more about financing your company’s software through a third-party vendor or if you’re a vendor wanting to offer financing to your clients for all the reasons we’ve outlined and more, be sure to contact Dimension Funding to get a head start on your approval process.

How Private Financing Is Revolutionizing Equipment & Software Purchasing

Equipment & Software Financing
Equipment & Software Financing

How Private Financing Is Revolutionizing Equipment & Software Purchasing

As we enter the second decade of the twenty-first century, our technology and machinery have progressed with an unprecedented degree of innovation. The capabilities and possibilities enabled by these innovations are quite literally endless. Almost all major businesses in the world utilize technology in one way or another and the demand for specialized equipment like robots and software is at an all-time high.

While the presence of this demand and interest is a good thing, the cost of admission continues to be a problem for both equipment purchasing partners and companies alike. There are workarounds to the problem, mainly bank loans and leasing, that lessen the burden but it’s not necessarily the best solution. But thankfully, there is another option that many purchasers are taking advantage of that you might not have considered.

In this article, we’ll tell you why privately financing your next equipment or software purchase through a third-party vendor could be the best overall choice for you and your business.

The Costs of Equipment Purchasing

You’ve probably understood already that equipment and software aren’t cheap. Especially the more specialized examples. This varies according to the equipment type and function of course but for the most part, it’s a serious financial decision to make. And also, a potentially beneficial one. The benefits of upgrading your equipment or using new production processes are huge and would require an entirely separate article to go in-depth into. The short version of all the benefits you gain access to include:

  • More productive capacity
  • Better pricing structures
  • Improved worker safety
  • More consistent work output
  • Higher quality work output
  • Potential to reach more customers
  • Ability to expand operations in more than one location

 

Bank Financing of Equipment & Software

Now let’s move onto financing your purchase through a bank. We’ll assume that you’re buying instead of renting the equipment or software in question. Renting isn’t a bad option by any means but as the instances of its usefulness are niche in nature, we’ll stick to the more orthodox approach of buying equipment outright.

Bank loans are the conventionally popular choice and there are certainly advantages to this approach. For one thing, banks can loan a very large amount of money if required. For another, if you already have a good relationship with your bank and have been in business for a considerable amount of time, then acquiring the loan will be much easier.

Bank loans have problems that many people don’t think about before making this important decision, however. Here are some of them in a little more detail:

  • Getting the Loan Itself. As we’ve already mentioned, getting a loan as an established business is easy but getting one as a new startup is almost impossible. Banks will very rarely trust newcomers with a huge amount of capital without a proven track record and it’s a classic catch 22. This is a big reason why bank loans are an inefficient choice for small business owners.
  • Assets Taken As Security. Another procedure in the loan approval process is agreeing to let the bank use assets of yours as security. The bank does this to ensure it doesn’t suffer a loss in case you don’t end up paying it back. Whatever the reason, it lessens your standing and negatively affects your company’s equity.
  • Only Equipment Is Financed. One thing buyers tend to forget is that there are many hidden costs associated with buying a piece of equipment or software. Delivery, setup, maintenance, training, troubleshooting, etc. All these processes come at a price and the bank will not assist you in handling them.
  • Uncertain Monthly Payments. Banks operate based on interest rates which fluctuate and change with the economic health of the country. Because of this, monthly payments are very rarely steady and can vary on a month-to-month basis. This makes financial planning a challenge and can hinder your yearly budgeting and profit forecasting.
  • Long Application Process. This might seem like a nitpick, but it’s an inconvenience, to say the least. Banks have very long application procedures and the waiting periods between appointments and approvals can either be a couple of weeks or a couple of months. Besides being a waste of your valuable time, it’s not a good option for people looking for a quick solution to a problem. So, unless you’re prepared to wait a while for your equipment purchase, bank loans might not be your best bet.

The Private Vendor Financing Solution

On the opposite end of the spectrum, private financing offers a much easier and more efficient purchasing opportunity for both small and large businesses alike. Companies like Dimension Funding are leading the charge in providing an easy, safe, and economically viable option for vendors and private customers alike.

The main advantages of private financing include:

  • Fixed Monthly Payments. Unlike banks that put you at the mercy of fluctuating interest rates, private financing lets you choose a low monthly payment for up to 60 months. This helps you plan out your finances better and keeps surprises at bay. You know exactly how much you’re paying each and every month. This amount is agreed upon during the sign-up process.
  • Up to $250k Without Financial Documents. You can finance equipment worth up to $250k through an “application only” option. This is in stark contrast to banks that have lengthy application processes as well as hefty documentation requirements. If the equipment you’re looking to finance is more than $250k then you just have to provide your financial statements.
  • Finance 100% of the Costs. As we’ve already mentioned, banks only finance the equipment itself. On the other hand, private financing companies like Dimension Funding finance everything for you. This includes all associated costs like maintenance, delivery, setup, etc. You don’t have to worry about unexpected expenses arising as everything is taken care of and included in your principal.

Because of these reasons, private financing has helped thousands of businesses and individuals finance their equipment and software upgrades quickly and easily. We hope this article helped explain the reasons behind this rise in popularity and gave you ideas for your own business and workflow.

If you’re interested in financing your equipment or software purchase through a third-party vendor, be sure to contact Dimension Funding. You’re only an online application and a quick approval process away from getting a time-tested, hassle-free, and convenient financing option for your next equipment upgrade.

Vendor Financing Programs: Why There’s No Better Time Than Now

Vendor Partner Program is your Road to Success
Vendor Partner Program is your Road to Success

Vendor Financing Programs: Why There’s No Better Time Than Now

Vendor financing is an important marketing and sales tool available to equipment manufacturers, dealers, and distributors. Even when the economy was doing well, a significant number of equipment buyers were opting for purchases financed by the equipment vendor.

Now that the economy has been in an economic slowdown and cash liquidity is a major area of concern for most companies, equipment & software financing is in greater demand. This is especially true for small and medium-sized organizations that need the equipment or software now, but don’t have enough in cash reserves to fund the entire purchase upfront.

From a vendor’s perspective, the ability to finance a purchase is an important one, especially if their competitors can and they can’t.

Why?

Because businesses that are unable to make a purchase outright would have no choice but to go elsewhere to a vendor who can work with their current financial situation.

The issue is that for many small or medium-sized vendors, they simply don’t have the financial resources to compete with large manufacturers/vendors with captive financing capabilities and successful vendor financing programs of their own.

Vendor Financing Programs Are a Win-Win

For equipment buyers, a vendor financing program gives them the flexibility to make installment payments (typically on a monthly basis), so they don’t deplete their working capital. Often times, there’s also the option of leasing, if need be, against an outright purchase of the equipment.

For the vendor, equipment financing enables a long-term relationship building exercise with the customer, leading to an increase in customer loyalty, repeat purchases, cross-selling, and technology enhancements as and when required. This translates into more business and additional revenue.

Selecting the Right Vendor Finance Partner

While the need for vendor financing can’t be underestimated, the real challenge for many vendors lies in their ability to set up an equipment or software financing program on their own. Most small and medium-sized vendors simply don’t have the requisite finance – or infrastructure – to manage and run a financing program on their own. They also lack the knowledge and experience. As such, finding a suitable finance partner is paramount to success.

A good finance partner will have access to capital, as well as the requisite expertise to successfully manage an equipment and software financing program. In addition, the selected partner should have a proven track record of vendor financing in the specific industry in which the vendor is operating, as industry-specific knowledge and experience is critical to the successful implementation of such vendor financing programs. The financing partner should also have a large capital base to be able to provide long-term solutions and stability to relationships both with the vendors and their end customers.

Once a vendor has selected a financing partner, the end-goal should be to build a long-term and sustainable relationship with a single financing partner instead of exploring multiple different options.

Get Assistance with Setting Up a Vendor Finance Program

To have a more detailed discussion on this subject and understand all the benefits of setting up a vendor financing program for your customers, contact us today at 800-755-0585.

6 Predictions for the Software Industry in 2021

Predictions for the Software Industry in 2021
Predictions for the Software Industry in 2021

6 Predictions for the Software Industry in 2021

The software industry has grown to an unprecedented level and with advancements happening at breakneck speeds, it shows no signs of slowing down any time soon. Whether you’re a manufacturer, a third-party vendor, or an interested enthusiast, the development of new methods and technologies is incredibly exciting.

2020 was a tough year for almost everyone and the software industry is no different. Restrictions and constraints forced everyone involved to think differently and to come up with better methods of doing work. Many parts of the industry that were advancing rapidly were unfortunately forced to come to a standstill owing to the nature of COVID 19.

A new year beckons a new start however, and the future has never looked better. The software industry will recover faster than any other industry and the hunger for progress will overcome the difficulty that follows.

In this article, we’ll give you 6 predictions on the future of the software industry in 2021 according to experts and people in the field. Familiarizing yourself with these developments will help you understand the trajectory of the industry better and will enable you to make better decisions financially and strategically.

6 Predictions for the Software Industry in 2021

Cloud Technology Improvements

As one of the rare subsets of the software industry that actually flourished during the pandemic, Cloud-based technologies have cemented themselves as an integral part of almost all workflows. COVID 19 gave us insight into using Cloud for downscaling as well as upscaling as the demand for services dropped dramatically. A good example of this would be industries like tourism where they had to uphold and maintain very expensive data centers even though the demand for the industry fell to almost zero.

Analyst Forrester has predicted that the Cloud infrastructure market would grow to an amazing 120 Billion dollars in 2021. This paired with a 35% growth rate indicates a high demand for Cloud-native engineers as well.

AWS Will Have Stiffer Competition

Amazon Web Services leads the charge in public Cloud vendors with an amazing 32% market share. However, the competition is quickly closing in on Jeff Bezos’s behemoth. Microsoft saw a 48% annual growth with their cloud offering with a 19% market share. Google trails behind with a still-impressive 7% market share but hot on its heels is Alibaba with a 6% market share.

Experts believe that Amazon and Google will keep the first and second spots respectively but Alibaba will overtake Google for the third spot. The multi-cloud initiative will also gain more momentum in 2021. Even though Amazon was reluctant to join the initiative at the beginning, it has had to give in as its competitors saw incredible results by joining.

Python and JavaScript Hold Their Own

The programming language terrain has also seen a major shift in recent years. Heavyweight, clunky programming languages are being replaced by easier to use, more developer-friendly languages like Python and JavaScript. With thousands of newer developers entering the market rapidly, the demand for these languages will exponentially increase as well.

Python leads the charge in data science while JavaScript upholds its crown as the best language for web development. Older languages like Java and C++ are feeling the pressure but their demise is still far away. The many software types that these languages account for still necessitate their existence. Their creators recognize the shift to easier to understand languages however and are constantly sending out updates to improve the functionality and usefulness.

Quantum Computing for the Win

Every industry has breakthrough technologies that quite literally revolutionize the field and for the software industry, quantum computing seems to be heading in that direction. According to experts in the field, it has the potential to impact every sector.

Quantum computing promises to be miles ahead of even our most advanced supercomputers. The possibilities it will unlock are quite literally next level as we aren’t even aware of them. While we still have some years to go for this technology to hit the mainstream, 2021 will make significant strides.

In 2020 Honeywell claimed to have created the world’s most powerful quantum computer beating out Google. Just a few weeks ago, scientists from a university in China demonstrated how Quantum Computing could beat our most advanced supercomputer at particular tasks like Gaussian Boson Sampling. These are just some of the developments taking place in the field and with our brightest minds working around the clock to make the impossible a reality, 2021 will bring awe-inspiring Quantum computing breakthroughs.

Artificial Intelligence Gets Smarter

You knew it was coming. If quantum computing is the revolution of the future, Artificial intelligence (AI) is the revolution of today. 2020 saw many permutations of advanced AI become a reality and 2021 seems to continue that trend.

Natural language processing saw incredible breakthroughs with GPT-3. The OpenAI created software creates human-like text made possible through Deep Learning. It literally made headlines when this article was written entirely using GPT-3! This could mean that small articles or even programs can be managed entirely by AI.

Other advancements in 2021 will include a shift towards ethical AI and explainable AI and we may even see laws posed by governments to regulate the technology and to prevent its misuse.

Blockchain Improvements

Another disruptive technology making waves in the industry is Blockchain. The potential is incredible and although Cryptocurrency may have tarnished its reputation, the possibilities are still exciting.

Many people capitalized on the popularity of Bitcoin and created elaborate scams to cheat people looking to get rich quick. Governments have even started cracking down on such schemes to protect the general public.

This created a lot of animosity and mistrust in the Blockchain technology for obvious reasons. However, Blockchain offers far more than just digital currency transfers. Companies will start to use the technology to store records, manage supply chains, and ironically even prevent frauds. Experts forecast that Blockchain will be used more as a smart contract mechanism in 2021. To further cement its importance, China has even added Blockchain in its 50 trillion “New Infrastructure” plan.

We hope this article gave you better insight into the future of the software industry in 2021 and beyond.

Financing your Next Software Upgrade

If you’re interested in learning more about financing your next software upgrade through a third-party vendor, be sure to contact Dimension Funding to get a head start on your approval process.

Why You Need a Software Financing Partner

Benefits of a Software Vendor Partner
Benefits of a Software Vendor Partner

Why You Need a Software Financing Partner

Many small and medium businesses desperately need new software and subscription services; however, they lack the capital and cash to purchase everything they need to run their company successfully upfront. Unfortunately for software vendors, this means that you are missing out on valuable opportunities to get your product and services into the hands of business owners everywhere.

What you may not realize is the solution to marketing your product to every business owner is to offer financing. Allowing your customers and clients to order, install, and maintain the subscription software while making monthly payments will encourage more consumers to purchase and use your software.

As a business owner, you’re probably thinking, “I don’t have the money or capital to just allow my product to walk out the door without it being paid in full.”

Every business owner asks that same question and what you might not know is that there are funding groups available who can be your subscription software financing partner and solve that problem.

The Benefits of Partnering with a Software Financing Vendor

There are many more benefits to partnering with a financing company beyond the ability to get your product into more consumer’s hands. When you partner with a financing company, you will see your profits shoot up. Customers will be more interested in your software knowing they can make monthly payments rather than having to save up hundreds or thousands of dollars for subscriptions and software. When you allow financing of your product through a financing company, the payment to your company is still the full price of the software. The payment will just come from your funding partner rather than the customer.

These monetary perks are exceptionally useful amidst global pandemics and economic downturn when businesses are struggling for cashflow and working capital. However, some financing partners, like Dimension Funding, offer a lot more perks as well including tailored marketing services.

Here are a few of the marketing services that we offer…

Co-branded Landing Pages – We create tailored landing pages on the Dimension Funding website that offer financing promotions to your prospects based on their unique needs. You get a personalized link to distribute to your prospects offering financing and co-branded with your logo, information and value proposition. We work with you to offer promotions that will engage your prospects and turn them into sales. Work with our marketing department or your account manager to put together landing pages that will promote your products and offer financing options that makes sense for your customers.

Advertising Flyers / Datasheets – We design co-branded flyers or datasheets in PDF format for your use in turning prospects into sales. We offer special promotions to your prospects designed to meet the needs of your prospects. We create professionally designed flyers and datasheets for your use to give to prospects and customers that offer financing promotions, special offers and the benefits of financing that eliminates a large cash outlay and saves working capital.

Email Marketing Dimension Funding will help you with email marketing and messaging that will get a better response from your prospects. We may be able to expand your reach with email marketing ideas and concepts that will engage prospects.

Exclusive Offers Be the first to be able to offer discounts and special financing offers to your prospects and customers. By offering financing promotions designed for your customers, you can turn more prospects into customers and close more deals.

Custom Promotions Just for your Prospects If you have an idea for a custom financing program tailored to your prospects, we will work with you to put it together. There are limitations on what is available but within those limitations, we can create personalized promotions for your prospects and customers that will generate more sales. Customized promotions can also help to close many deals instead of the prospect going dark.

White Papers / Literature – Work with Dimension Funding to create White Papers, Blog Posts or other Literature that can be used to generate more prospects. We will promote these on social media, in our quarterly newsletter and in our email-marketing reaching many thousands of prospects.

Social Media – As a preferred vendor in our vendor partner program, we will work with you to create cobranded LinkedIn posts and other social media posts to get you in front of an expanded audience and engage your current LinkedIn audience with messaging that will generate more interest and leads.

Dimension Funding will also work with you to generate sales and increase your leads by adding valuable widgets to your website such as a financing tool that allows customers to apply for financing directly online through your site without having to speak to anyone.  A payment calculator is another option that Dimension Funding can add to your site as well as a mobile app that allows you to get financing information from their iPhones.

Who would have thought that your subscription financing vendor could also serve as your marketing partner? Dimension Funding is the partner you are looking for to grow your business through offering innovative solutions to financing to your customers and clients that also address your marketing needs.

How Investing in Software, Equipment and Tech Can Save Money on Your Business Taxes

Save on your Business Taxes by Investing in technology
Save on your Business Taxes by Investing in technology

How Investing in Software, Equipment and Tech Can Save Money on Your Business Taxes

In addition to the purchase of equipment and assets for your business, the purchase of software can be written off on your business taxes. One of the biggest write-offs comes from taking advantage of IRS Section 179. You can write off up to $1,040,000 under IRS Section 179 for equipment, software and tangible personal property with a spending cap of $2,590,000. Anything not covered by IRS Section 179 can be written off under Bonus Depreciation.

Another area for your tax accountant to explore are tax breaks under the CARES Act passed in March of 2020 to help businesses survive during the measures taken to get the pandemic under control.

What Is Section 179 of the Tax Code?

Section 179 of the IRS Tax Code is for small and mid-sized businesses that purchase equipment, which includes software, during the qualifying year. The deduction under Section 179 allows for the full amount paid or financed during the tax year to be taken. To claim this deduction, businesses need to fill out form 4562 Part 1 and attach the form to your standard business tax filing. The deduction is not automatic so ensuring you have the correct forms is vital to getting the tax credit you deserve.

The best part of Section 179 is that other technology you invest in this year qualifies for this deduction including:

  • Machinery and business equipment
  • Business vehicles and fleets
  • Computers
  • Retail software
  • Office furniture and equipment
  • Property
  • Improvements to commercial buildings such as upgraded security alarms, HVAC, roofs, or fire systems
  • Tangible personal property

What is tangible personal property?

Tangible personal property includes personal computers that you take between home and the office but that are used for business, your personal office equipment, and other property that you own personally but is used for business solely. The property also has to last more than one year.

Some specific items that cannot be deducted using Section 179 include:

  • Land
  • Inventory
  • Permanent structures attached to land such as fences, paved parking lots, swimming pools, courtyards, or driveways
  • Property being used outside of the U.S.
  • Intangible property such as patents, trademarks, and copyrights

Another great thing about the Section 179 Tax Deduction is that even used equipment, machinery, furniture, etc., that you purchase that year is considered a new purchase under the code. To make a claim on your 2020 taxes, the equipment or software must be purchased or financed, installed, and be used between January 1, 2020 and December 31, 2020.

Bonus Depreciation

If your purchase exceeds the IRS Section 179 spending cap of $2,590,000, you can still write off the remaining amount under Bonus Depreciation. The amount over the spending cap reduces the Section 179 depreciation amount dollar for dollar. However, the amount of the purchase not covered by Section 179 is still covered under Bonus Depreciation. Consult your tax professional to ensure that any purchase is covered by IRS Section 179 and/or Bonus Depreciation.

Other 2020 Tax Breaks Your Small Business Needs to Know

One of the biggest tax benefits of 2020 for small businesses comes from the CARES Act that was passed in March of 2020. This legislation allows businesses to delay paying the company responsible portion of payroll taxes that would normally be accrued between March 27th, 2020, and December 31st, 2020. The deferment doesn’t even have to be paid back all at once! Two payments are required — half on December 21st, 2021, and the other have one year later the same day. This tax deferment is only for businesses that did not get one of the SBA paycheck protection loans. However, businesses that do qualify will get two years to pay their 2020 payroll taxes.

Also included in the CARES Act for 2020 is an Employee Retention Tax Credit. This deduction allows your business to get a payroll tax credit if you are at least partially shut down by government order due to COVID-19, your quarterly sales revenue has dropped by at least half, and you have 100 or less full time employees. A wage credit up to $10,000 per employee can be claimed to keep paying your employees. If your business employs more than 100 people, the tax credit can be claimed for furloughed employees or employees who have a drastic reduction of hours. This tax credit is also not applicable for businesses that received a paycheck protection loan.

Alternative Motor Vehicle Credit

If you’re investing in a fleet of cars or business vehicles, not only can you use Section 179 deduction, but you may also qualify for the Alternative Motor Vehicle Credit if the vehicles you purchase use an alternative fuel source such as hydrogen fuel-cell technology. Although the credit doesn’t apply to electric or hybrid cars, you might also qualify for the Qualified Electric Vehicle Credit (Form 8834).

Qualified Research Expenses Credit / Increasing Research Activities Credit

Businesses that are tech, medical, or manufacturing related niches are often eligible for the Qualified Research Expenses Credit / Increasing Research Activities Credit. This credit, for small businesses only, is meant to encourage business owners to do their own domestic development and research of new products.

Some of the activities that qualify under this credit include:

  • Developing new products, formulas, or processes
  • Development of protypes and models
  • Applying for patents
  • Certifying
  • New technology development
  • New software development
  • Environmental testing
  • Building new or improving manufacturing facilities
  • Streamlining internal business processes

You’ll need form 6765 and Form 8974 for your 2020 business taxes. Consult your tax professional because many more businesses qualify for this deduction than actually take the deduction.

Summary

Business taxes can be challenging to understand, and with so many deductions and credits available, consulting with a tax professional is always the best option. While our list is inclusive of tax credits related to purchasing business software or new technology, there are many more breaks your company could be taking advantage of. Regardless of your previous tax years, 2020 is a great year to invest in your new software and technology for your business and take advantage of these amazing tax breaks while they are still available.