The fourth quarter is a great time to consider upgrading your office equipment – both as a magnanimous gesture to your hardworking crew and to bring more efficiency to your operation.

If your business booms in summer, chances are you spend a good part of the year focused on keeping up with jobs in the field. But when the weather turns dreary and the work slacks off, it’s time to turn your attention indoors and take the time to consider office needs. Consider purchases you can make before the end of the year that will improve working conditions for your staff and possibly make tax time less torturous.

Ask employees to look back over the year and think of any items that might have made the business more efficient. Solicit input on what would make their jobs easier, and then consult your accountant about how buying those items before the end of the year might affect your tax situation.

 

Buy and get a deduction

The Small Business Jobs Act of 2010 changed federal income tax code Section 179 to allow businesses to deduct the first $500,000 of equipment purchased in 2011 from that year’s taxable income. Beyond that new service truck you’ve been thinking about, basic material goods that generally qualify for the Section 179 deduction include:

Computers and software

Office furniture

Office equipment (printers, fax machines, copiers, scanners)

Here are some ideas for fourth quarter purchases that can make your company’s New Year a happy one:

Laptop computers. Are your office employees chained to their workspaces because they use desktop computers? Consider a few laptops. If you haven’t looked at laptops lately, you’ll be pleasantly surprised at how the prices have come down in line with desktop models. Laptops let employees take their work home, on business trips or to favorite places around the office. A laptop could help keep employees on schedule in winter by allowing them to connect to the office when roads are closed or they are home with a sniffling child.

Cell phones. Cell phones can qualify for a Section 179 deduction if used more than 50 percent for business every year. It gets a little tricky, so be sure and check with your accountant on whether you need to track usage charges, and whether cell phones bought for employees need to be considered part of their benefits for tax purposes.

Software. If employees are having compatibility issues with the outside world in their daily business, maybe it’s time for a software upgrade. Or, if they’ve mastered basic accounting software, maybe it’s time to add payroll software. To qualify for a Section 179 deduction, the software must be off-the-shelf – readily available to the public – rather than custom designed.

Ergonomic gear. Comfortable, healthy workers are happy, productive workers. If your people have aching backs, maybe chairs made after the Reagan administration are in order. To prevent or relieve other aches and pains, consider providing armrests, ergonomic keyboards, or lumbar back supports.

Marketing materials. Stylish new business cards could be a gesture of confidence in your sales team. Or could your company benefit from updated brochures? Does your website need a makeover? Spending money on marketing materials and promotional activities can also be written off during tax season.

Membership dues. Joining the state or national association for your profession provides networking and educational opportunities, and the membership fees are deductible. Subscriptions to trade publications or publications from your association are also costs you can write off. Your staff will benefit from feeling more connected to peers in their field.

Business-related education. Paying for continuing education shows your staff you want to help them excel by learning to use newer technology, mastering more effective techniques, or becoming familiar with the latest legislation. Money you spend on classes, seminars, conventions or instructional videos is tax deductible as long as the expenses are directly related to your business and are intended to improve job skills and knowledge. It may be too late to get people into classes (and get a deduction) this year, but it’s worth keeping in mind for the future.

 

A word of caution

It may be the holiday season, but please, don’t play Santa Claus with a sack full of software. Yes, your investment in equipment may make some employees’ days a little brighter, make their jobs a little easier, boost their energy, and increase their productivity. But work-related items are not gifts and shouldn’t be presented as such, unless you want the Ebenezer Scrooge award. Bonus checks and frozen turkeys are gifts. Laptops and cell phones are tools.

And be considerate. Just as some people can’t wait to get their hands on the latest gadgets and love the challenge of learning new technology, others are intimidated by it. Be understanding of those employees. Make sure they get the time and training they need to be comfortable, and don’t feel bad if they meet your purchase with a little grumbling at first. And don’t say, “I told you so,” when slow adapters start to see the benefits of the new equipment or software.