Capit alizing or expensing computer properly can reduce your costs

By Ray Richardson Dataline Corporatlon

IN A RECESSIONARY era when Ibuilding supply firms are trying to make every nickel count, some silver linings make either computer conversion or additions to existing systems not only advantageous, but extremely tempting.

Inventory is historically lower and slower moving during an economic down turn. simplifying conversion. And, while business is down, the margin for business judgement error decreases necessitating the need for immediate, accurate reports on such items as stock reports, accounts receivable, accounts payable, etc. that only a computer can give.

But, probably one of the blggest advantages. right now. ut. tsms favorable methods of writing off a major portion of the expenses at a time when oroductivitv and cash flow are needed ihe most. -

There are a variety of waYs that users write off the purchase of a computer system or system up-grade. The following illustrations are for information purposes only (based on methods currently being used).

Our model assumes a "turn-key" computer system broken down as follows:

5.