Throughout 2021, it’s important think about the benefits of the Section 179 Deduction for software purchases.
What is the Section 179 Deduction?
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased/financed and installed during that tax year. That means that if you buy (or lease) a piece of qualifying equipment or software, you can deduct the purchase price from your gross income. It’s an incentive created to reward businesses that invest in themselves.
By opting to not use the deduction, companies have to amortize the write-off over the useful life of the purchased asset. However, using the Section 179 Deduction decreases your Federal Income Tax for 2021, saving your company money at year’s end!
How much money?
It depends on what you claim, but the deduction limit stands at $1,050,000 for software investments made in the calendar year.
So, if you’re ready to improve your business with comprehensive Cloud or On-Premise ERP-ONE+ distribution software with tools like wireless warehousing, mobile applications for remote engagement, and a supplemental integrated E-Commerce webstore, now is the time!
The Distribution One implementation calendar is already being scheduled for next year. Remember: to qualify, software purchases and installation must be completed by December 31, 2021.
Have questions? Visit the official Section 179 website and speak with your accountant or tax professional. Distribution One distribution experts are also here to help! Contact us today to ensure your tax benefit for next year.
"I would absolutely recommend Distribution One. I think that the focus and attention we received and the amount of time the team spent with us was extremely important to make sure that we had the smoothest implementation as we possibly could."
"I’m excited about the future. We processed hundreds of orders in the first week and project our webstore will be handling over 10,000 orders per year."
For over 10 years, Empire Bolt & Screw has enjoyed substantial savings utilizing Distribution One software. "Out of the gate, our first cost savings occurred in accounting. What was previously a full-time job went down to just 2 hours a day. This change alone saved us $40,000 in year-over-year labor costs."
Customers share their ROI achievements. Click each testimonial to read the full case study.
“Out of the gate, our first cost savings occurred in accounting. What was previously a full-time job went down to just 2 hours a day. This change alone saved us $40,000 in year-over-year labor costs.”
“Distribution One has allowed us to deliver 30% more orders without having to increase our labor force.”
“ERP-ONE actually helps our business be more productive. We operate more efficiently because our software performs like a world-class product. And that’s not marketing hype. We trust in its reliability. It is one of the best decisions our company made.”
“ERP-ONE tracks product costs and sales margins for us… that benefit alone has added 4% to our bottom line after the first year of implementation and has more than paid for the cost of ERP-ONE.”
“Enhanced productivity, lower operational costs, higher service levels, and stronger customer relationships—it’s all been attained through our ability to provide continuous real-time data generated through the myriad of programs within ERP-ONE.”
“Having spent 30 years on the operations side of distribution using SAP and AS400 software, I have not encountered a better system than ERP-ONE. The efficiencies and expandability has allowed us to improve our sales by $500,000 per employee in a year.”
“We had immediate visibility into which sales representatives were performing and which product lines were providing the best return for our business.”
“The ability to manage orders online has created greater efficiency in their business and has delivered more flexibility in modifying and tracking orders. Changes to an order instantly cascade all the way through the terminals and the processing stations cutting production time by at least 15%.”
“I’m excited about the future. We processed hundreds of orders in the first week and project our webstore will be handling over 10,000 orders per year.”