Below we explore some of the key strategies and latest stories behind why law firms are turning to leasing in 2021.
MANAGE IT INVESTMENTS
In today’s environment, firms are reprioritizing their IT budget for the years ahead. Firms’ technology spend tends to include a variety of equipment ranging from laptops, desktops, telecom systems, copiers, servers, and more. Whether migrating from a desktop to laptop model or implementing a cloud-based infrastructure, you can combine IT hardware and services into one recurring expense through leasing.
At the onset of the pandemic, an Am Law 100 firm began shifting their IT model to support employees working remotely. The firm was migrating from desktops to laptops and sought out a seamless solution. A fair market value lease provided them with a built-in refresh cycle to protect against obsolescence and included data wiping services for when it is time to return the equipment.
- Create budget predictability.
- Implement a built-in refresh cycle.
- Avoid technology obsolescence and IT maintenance.
ALIGN FINANCIAL STRATEGIES
Making long-term growth investments is critical to keep pace with the evolving and competitive legal landscape. Whether firms are investing in lateral hires, training programs, future build-out projects, or wanting to maximize tax benefits, leasing is a way to help achieve their financial goals.
A California-based law firm needed to move their headquarters office to accommodate growth. The relocation required a significant investment in furniture, technology and other leasehold improvements that went beyond the tenant allowance. Although the firm had a strong cash position, finding a solution to maximize their tax strategy was a top priority. Utilizing a lease structure allowed the firm to expense their rental payments and align the cost of the project to the partners’ tax benefits.
- Expense lease payments.
- Use cash for other initiatives.
- Align tax benefits for partners.