ITEquipmentBuyvsLeaseDecision

1、IT EquipmentBuy vs. Lease DecisionGary E. Carpenter, CPATechnology Assurance CommitteeNew York Society of CPAsTuesday December 14, 2004What Should We Look At In The Buy vs. Lease Decision?What are the numbersWhat is the life of the assetCorporate policiesResidual valueUpgradingTechnologyCash and/or

2、financing resourcesYou Decide to BuyHow will you pay for the asset?Identify the Economic and Corporate Life of the asset.Plan on how you will dispose of the asset.Plan your replacement/upgrade asset now.You Decide to LeaseNow What?Work with a company you know and TRUST!List what your needs are.Do “w

3、hat if” scenarios.Have an exit plan at the end of the lease.Beware of the low number.The Lease Ends,What do We do Now?Know when the lease ends.Make sure you know when the lease ends.Then check again to see when the lease ends.At least six months before the lease ends:Decide if you want to keep the a

4、ssetContact the lessorNegotiate new contract or prepare to return the assetIf returning the asset what is your replacement planWe Made the Wrong Decision!If the asset was purchased:What is wrong?TechnologyAssetImpact on financial statementsFinancesWe Made the Wrong Decision!(continued)If the asset w

5、as leased:What is wrong?TechnologyAssetImpact on financial statementsLease agreementResidual value of the assetCowboy LogicGood judgment comes from experience, and a lot of that comes from bad judgment.Never ask a barber if he thinks you need a haircut.If you get to thinkin youre a person of some influence, try orderin somebody elses dog around.Lettin the cat outta the bag is a whole lot easier n puttin it back.The quickest way to double your money is to fold it over and put it back in your pocket. Gary E. Carpenter, CPACarpenter Information T