When it comes to doing business, one of the biggest things that makes a difference is reducing depreciation. While you can count it as an expense, getting rid of it entirely is often one of the most profitable moves a company can make.
But how do you do that well? That’s the topic of this post. We look at how the top companies and brands are slashing their facilities’ depreciation while still deducting allowable expenses from their taxable income to boost profits.
Use Preventative Maintenance
Preventative maintenance is one of the most powerful tools firms use to keep their premises in check. Commercial maintenance services stop wear and tear in its tracks by replacing items before they wear out and cause damage to other areas. They also treat surfaces and protect them against the rigors of business operations.
The value of preventative maintenance is most obvious in factories and warehouses. However, it is also something you can apply in offices and other workplaces.
Get Building Envelope Maintenance
It’s also worth scheduling regular building envelope maintenance (if the structure of the facility is your responsibility). Getting crews to come over and fix windows, walls, and roofs can help you avoid large and unexpected expenses in the future.
Sometimes, building envelope maintenance contractors will recommend various products and services to make structural elements last longer. For example, they might add a coating to your roof to protect it against the elements and stop the rain from destroying it from the outside in. Usually, you’ll want to follow up on these offers to keep the structure in good working order.
Segregate Costs
Another strategy is to segregate your costs that qualify for depreciation expense calculations. For example, instead of depreciating the whole building and calling it a day, you depreciate parts of the facility separately.
For example, you could have your HVAC systems on one track, and your plumbing on another.
These approaches ultimately increase the amount of income you can keep by cutting tax. You shouldn’t have to pay the government money for depreciating assets since it technically counts as a loss.
Use Flexible Layouts
Another approach you sometimes see is companies using flexible layouts in their workspaces. These help to make maintenance more manageable by allowing workers to move around to accommodate servicing activities.
For example, having movable desks and equipment allows offices to transplant between floors while deep and essential maintenance work is carried out. The same is true for factories that have extra space that permits renovations in chunks. These approaches allow operations to continue, even when crews are on-site in vast numbers.
Invest In Modernization
Finally, some businesses reduce deprecation and make better use of it by modernizing their facilities so that time doesn’t take its toll as much.
For example, you could invest in energy-efficient heating and cooling climate control systems that don’t eat into bills. You could also make structural improvements to the surrounding building to prevent bits from falling off it and requiring expensive replacements later on.
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