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New Business Tax Plan Gives Organizations More Money to Invest in Technology

Updated: May 5, 2020

Waiting for the right time to move forward with technology and digital transformation? NOW is the PERFECT TIME!

The recent agreement on a new tax bill gives small, mid, and large organizations historic changes on their business income taxes and deductions. This is GREAT NEWS for those companies looking to move forward with new and updated technology.

Business owners who have sole proprietorships, partnerships and companies structured for tax purposes as S corporations have significant tax breaks. Under the new GOP deal, they can deduct up to 20 percent of their business income.

C corporations, which include some small businesses and ALL of the Fortune 500 companies, will be taxed at a new rate of 21 percent, compared to the current range of 15 percent to 35 percent.

In Section 179 of the agreement, companies can write off many types of equipment and technology purchases up-front, rather than depreciate them over a period of years. Companies are now able to deduct $1 million in purchases, up from the current level of $510,000.

Organizations need to evolve and address the changing business landscapes to stay competitive. However, some business owners are slow to adopt a digital change because they are concerned about business process costs or growing short-term revenues. These worries are short-sighted.

The new tax bill and increased deductions will help organizations invest in themselves and implement needed technologies. Digital transformation is key for these organizations. New and innovative business models are created to improve the experience of employees, customers, partners and stakeholders. These tech strategies bring together people, data and processes to create value for customers and maintain a unique, competitive advantage.

Aggressive organizations are using the new tax bill to enhance systems such as their ERP, CRM, SharePoint, Office 365, Cloud and Cybersecurity strategies. Cloud solutions like Microsoft Office 365 or Dynamics 365 can help your staff operate at peak proficiency in a streamlined work environment. Identity and Access Management strategies such as Azure AD and Okta can help protect your organization from cybersecurity threats.

As you understand your internal needs and your customers behaviors, you’ll be in position to create a digital plan and choose the right technologies to meet your needs. Customer expectations keep evolving. The bottom line is that technology is transforming the business world. There is no question that digital transformation is no longer an option. To stay competitive and survive, you need to build a business that can adapt its technology and strategies rapidly to take advantage of the many benefits of digital technology.

Most important – TAKE ADVANTAGE of the new tax bill.

JourneyTEAM is a Microsoft Gold Partner and top 20 Okta World-Wide partner that can help you map out your technology needs. They specialize in the Dynamics 365 stack including; CRM, ERP, sales and marketing, finance and operations, field service, talent and customer service. They will dive deep into your data and have business analytic tools to help you gain insights into your business and your customers.

Contact JourneyTEAM today at and they will send you a free white paper on “What the Heck is Digital Transformation?” Want more information about the new tax bill and how to leverage the business opportunity? Set up a discussion with one of our Business Technology Consultants at 800.439.6456.

**We are NOT tax professionals! Contact your accountant for details on how the tax bill affects your business.