Redpath and Company Announces 2024 Partner and Director Promotions
St. Paul, Minnesota (October 1, 2024) – Certified public accounting firm Redpath and Company (Redpath) has promoted Sarah Gengenbach to partner and...
May 31, 2017 — Recently, the Financial Accounting Standards Board issued an update that will significantly change the way in which lessees and lessors account for leases. The change, which takes effect in 2020, will require businesses to recognize lease assets and liabilities on the balance sheet and to disclose key information about leasing arrangements.
However, for the time being, your manufacturing business will still face the quandary over whether to buy or lease manufacturing equipment.
The best place to start is with a calculator to crunch the numbers both ways, as a lease and purchase. Visit Equipment Buy vs. Lease Calculator for a quick and useful resource.
Pros
Cons
Pros
Cons
Primary considerations under either method should include the value of tax deductions. When buying, estimate the resale value at various points in time. But also consider the revenue generated by the equipment, its useful shelf life or longevity and the overall cost of use. Knowing how long you intend to use the equipment is a critical factor as well.
When leasing, it may be possible to negotiate a purchase option if you intend for long-term use of the equipment. Under this scenario, a portion of your lease payment could be credited toward the purchase price.
St. Paul, Minnesota (October 1, 2024) – Certified public accounting firm Redpath and Company (Redpath) has promoted Sarah Gengenbach to partner and...
Editor's note: This piece was originally published in 2023 and has been updated to include additional resources.
Minnesota has become the most recent state to mandate pay transparency. Earlier this year, Governor Tim Walz signed an omnibus labor bill into law...