Converting your small-business technology budget from capital to operational expenses

Thought Leadership on The Future of Technology presented by One Source Imaging Solutions, Inc.

Strategic and effective budgeting is absolutely crucial for any operation – regardless of the size of your business or the industry you’re working in. For a small business, it’s especially true that effective budgeting is a prime concern: You need to make the best investments to maximize your budget and get the absolute best ROI.

So how do you that? Many small businesses are focusing on converting their technology budgets from capital expenditures (CAPEX) to operational expenditures (OPEX).

The difference between CAPEX and OPEX

Capital expenditures are broken down as the funds that your business delegates to purchasing physical goods or services that are used to expand your ability to generate profits. In terms of a technology budget, this would encompass new hardware and devices.

An operating expenditure is an ongoing cost that you pay to run your business. In contrast to CAPEX, operational expenditures are fully tax-deductible in the year they are made – which is what makes the conversion especially appealing to small businesses.

Converting your budget

Obviously you can’t simply claim CAPEX expenses as OPEX – but there are smart and strategic ways to convert your spending. Some effective ideas include:

• Invest in all-inclusive IT services and support from professional managed services leaders in your area.

• Talk to your IT provider about cloud-based solutions such as hosted email, backup and business continuity services, hosted phone solutions (VoIP) and server hosting/Infrastructure as a Service (IaaS).

• Renting or leasing hardware, known as Hardware as a Rental (HAAR), keeps you from purchasing new equipment and devices every three to five years. HAAR allows businesses the ability to refresh their systems more frequently, before they become more expensive to operate and maintain.

• Ask your IT provider about web-based application access through your web-browsers, instead of procuring your line-of-business CRM applications. Many providers will offer support and upgrades as part of your monthly fees.

To read more on how your business can reduce capital expenditures with technology purchases visit us at

Are you ready to maximize your budget by making the most effective investments for your continued growth and success? Reach out to the dedicated team of IT experts at One Source to learn more and start converting your capital expenditures to operational expenses – contact us at or 410-931-6363.

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