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| With the upcoming release of TimeTec Cloud, the perfect cloud-based workforce management system, we have received many inquiries on the finance-wise benefits of using the subscription-basis TimeTec Cloud, rather than a software that is purchased one-off. True, in the long run, the total subscription cost of TimeTec Cloud may outweigh that of a purchases software, but its not all that black and white. |
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| Pay to Purchase, or Pay to Subscribe? |
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| To help you comprehend, we’ve come out with the comparison table below: |
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Pay to Purchase
Purchased Software |
Pay to Subscribe
TimeTec Cloud |
| Start-Up Capital |
You need to have a large amount of expendable cash for purchasing and setting up the system, as a purchased software system is normally expensive. |
Don’t need to have a large amount of cash to set up, as subscription-based software are normally much cheaper, thus easing your cash flow |
| Expense Type |
Purchasing a software, will be considered as a Capital Expenditure (also known as CapEx). |
Subscribing to a software, on the other hand, is considered Operating Expenditure (OpEx). |
| Tax Deductions |
From an income tax perspective, CapEx can only be deducted from the company’s revenue over its useful life at a certain percentage, and not a full cost, as it is considered an asset to the company. So if you purchase a software at $1000, you may only be able to exempt $200 from being taxed (if say the asset can last for 5 years). |
From an income tax perspective, OpEx is operational cost along with other day-to-day business activities. This operating cost can be deducted in full from the total revenue of the company, thus exempting it from being taxed. |
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| So overall, the benefit of subscribing for a software like TimeTec Cloud, besides it being convenient, easy, and burden-free, a subscription-based software could save costs for you in the income tax aspect. |
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| With the minimum start up cost of TimeTec Cloud being at USD25, the burden on private-owned companies and SMEs are also reduced, and with the TimeTec Cloud Free 30-day Trial, you can experience it for yourself and be absolutely sure about your decision before going through with it. |
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