Stepping over dollars to pick up pennies with backup can cost your business more than it saves—invest in reliable online backup instead.
It’s story time again!
This time we are talking about Dave a former client of ours. He decided several years ago to change his accounting practice’s IT support to a national company that produced one of the software packages he used. Dave listened to their sales pitch about a better understanding and support of their software for less money per month. Dave still called us once and awhile to help do things in person because this national company did not have any local presence. It had been almost a year since we had heard from Dave last when we got a phone call from another local computer repair shop asking us for any information we could provide to help them – Dave’s server had crashed and was not booting after a power outage.
It turns out that Dave’s national IT support company did not have any backups of the server. They had no idea how the server was configured and this forced Dave to reach out to the local computer repair shop. We gave them credentials that we had for the backup system we had put in place previously and talked them through reconnecting a network storage device to the server to get the server back to complete functionality. This process took them about a week to complete.
During the time that we did support Dave there was a similar incident with one of his computers. We used the backup system we had recommended to get him back to fully functional in a matter of hours – in the middle of tax season no less.
The moral of the story is that Dave should have stayed with Farmhouse Networking or moved to a managed IT support company that understands both the software and the things that can go wrong in a company like Dave’s account practice so that he could be properly protected.
Modern accounting firm using managed IT services to keep tax software and client data online during busy season
Tax season is when every minute of billable time matters, and even a one-hour outage can cost thousands in lost work, delayed returns, and stressed staff. As a firm owner, the right IT strategy is the difference between a smooth March and a “fire drill” every week.
Why Downtime Is So Costly During Tax Season
Accounting teams regularly work 60+ hour weeks during peak busy season, so any outage hits during extended hours, not just 9–5.
Firms that move from reactive to proactive IT strategies have been able to cut downtime by 60–80%, protecting both billable hours and client trust.
Technology advances have already helped 69% of firms reduce time spent on admin tasks, which means you’re increasingly dependent on always-available systems.
In practice, that means tax software, QuickBooks, email, client portals, and e-file systems must stay fast and available—even at 9 PM on a Saturday in March.
Practical Actions You and Your IT Team Should Take
As the owner, your job is to set expectations, fund the right solutions, and make sure your IT partner or internal team executes before tax season hits.
1. Define Acceptable Downtime and Recovery Targets
Set Recovery Time Objective (RTO) for critical apps (e.g., “tax software back online within 30 minutes”).
Set Recovery Point Objective (RPO) for data (e.g., “no more than 15 minutes of work lost if something fails”).
Require your IT provider to document how their backup and disaster recovery design actually meets those targets.
2. Harden and Modernize Your Infrastructure
Move key workloads (tax apps, file shares, QuickBooks, portals) to scalable cloud or private hosting so performance doesn’t collapse under peak load.
Decommission old servers and unused software that increase failure risk and maintenance overhead.
Implement redundant systems for critical functions—at minimum, dual internet connections from different providers.
3. Automate the “Failure-Prone” Tasks
Enable automated patch management so security and stability updates happen after hours, not manually in the middle of busy season.
Automate data backup verification so someone doesn’t have to remember to check if last night’s backups actually completed.
Use automation for repetitive workflows like recurring invoice generation and batch processing of returns during off-hours.
4. Lock Down Cybersecurity Without Slowing Staff
Enforce multi-factor authentication (MFA) on all remote access, portals, and email accounts that touch client financial data.
Standardize access control (no shared logins, immediate offboarding for departed staff, clear least-privilege rules).
Maintain a written information security plan aligned with IRS Publication 4557 and FTC Safeguards expectations.
5. Demand 24/7 Support and Clear Escalation
Make 24/7 support a non-negotiable during tax season so issues at night or weekends are addressed immediately.
Require defined SLAs (response and resolution times) for any outage that touches tax apps, QuickBooks, or client-facing portals.
Ask your IT provider to test an incident response plan at least annually, including simulated ransomware or major vendor outages (like the July 2024 CrowdStrike event that disrupted 8.5 million devices).
6. Train Your Team to Avoid Preventable Incidents
Run short, focused phishing and security awareness training for staff before busy season.
Provide simple playbooks for “what to do if X happens” (ransomware popup, strange login alert, application freeze).
Make it clear that reporting a problem early is rewarded, not punished—this reduces hidden incidents that later explode into full outages.
Common Client Questions (and Strong Answers You Can Give)
You can turn solid IT preparation into a client trust advantage by proactively answering these questions.
Q1: “What happens to my data if your system goes down during tax season?” A: Our systems are backed up frequently with both onsite and cloud-based, immutable backups, and we have defined recovery objectives so we can restore access quickly even in a worst-case scenario.
Q2: “How do you protect my financial data from hackers?” A: We use multi-factor authentication, strict access controls, encryption, and continuously updated security tools aligned with IRS and FTC guidelines to safeguard your information.
Q3: “Will a cyberattack or outage delay my return filing?” A: We’ve engineered redundancy and disaster recovery around our tax applications, with clear recovery time targets and 24/7 IT monitoring, so even if something happens, we can recover quickly without missing filing deadlines.
Q4: “Can I still access my documents if your office is closed?” A: Yes, our cloud-based portals and systems are designed for secure remote access, allowing us and you to access documents from anywhere as long as there is internet connectivity.
How Farmhouse Networking Helps Accountants Minimize Downtime
Farmhouse Networking specializes in managed IT services for fast-growing accounting and finance firms, with a focus on performance, uptime, and client experience. As a business owner, you get a partner that understands both the technical and regulatory pressures of tax season.
Here’s how Farmhouse Networking can support the action steps above:
Proactive managed IT and cloud services: We design and manage scalable infrastructure and cloud solutions built specifically to handle tax-season peak loads for accounting firms.
Business continuity and disaster recovery: We implement and test backup strategies (including immutable and cloud backups), document RTO/RPO, and prepare runbooks so your team knows exactly what happens when something fails.
Security and compliance alignment: We deploy MFA, patch management, endpoint protection, and network hardening that align with IRS and FTC expectations, helping you protect client data and avoid regulatory headaches.
24/7 monitoring and support: We provide round-the-clock monitoring and responsive support, so your late-night tax work is covered and small issues don’t become revenue-killing outages.
Strategic technology roadmap: We help you decommission legacy systems, plan upgrades, and “future-proof” your practice so each year’s tax season gets easier, not harder.
Take the Next Step Before the Next Busy Season
If you wait until March to “fix IT,” you’re already too late. The easiest way to protect your firm’s revenue, reputation, and sanity is to partner with an IT team that lives and breathes accounting workflows and tax-season realities.
Email support@farmhousenetworking.com for more information about how Farmhouse Networking can help improve your business, minimize downtime next tax season, and give you and your team the confidence to focus on client work instead of fighting technology.
Secure endpoints don’t guarantee cloud safety—address cloud-specific risks now
The ability to store and access data remotely in the cloud has revolutionized the way organizations operate, providing flexibility, scalability, and cost-efficiency. However, with this convenience comes the need for robust security measures to protect sensitive information from cyber threats. This article explores the importance of cloud security and provides strategies to safeguard your company’s data in the cloud.
Understanding Cloud Security
Cloud security encompasses a set of controls, processes, technologies, and policies designed to protect cloud-based systems, infrastructure, and data. It is one part of computer security and information security, aiming to safeguard businesses from financial, legal, and reputational repercussions of data breaches and loss.
Cloud security involves various strategies and best practices to ensure the confidentiality, integrity, and availability of cloud resources. It includes measures such as real-time monitoring, multi-factor authentication (MFA), identity and access management (IAM), cloud-to-cloud backup solutions, systematic off-boarding processes, and anti-phishing training.
Real-time Monitoring
Real-time monitoring is a crucial strategy to detect and respond to suspicious threats promptly. By implementing real-time monitoring tools, businesses can gain visibility into their employee activity and cloud systems to proactively identify any potential cyber attacks. This allows for immediate action to mitigate risks and minimize the impact of data breaches. According to IBM, the global average total cost of a data breach in 2023 was $4.45 million, highlighting the financial implications of inadequate security measures.
Multi-Factor Authentication (MFA)
Traditional username and password combinations are no longer sufficient to protect user accounts from hackers. MFA adds an extra layer of security by requiring users to provide multiple pieces of evidence to verify their identities. This could include a combination of something they know (password), something they have (a mobile device or security key), or something they are (biometric data like a fingerprint or facial recognition). By implementing MFA, businesses can significantly reduce the risk of account compromise attacks and prevent unauthorized access to cloud applications.
Identity and Access Management (IAM)
Identity and access management (IAM) is a critical component of cloud security. It involves assigning proper levels of authorization and access controls to ensure that employees only have access to the information and resources necessary for their roles. IAM not only prevents accidental data breaches but also protects businesses from external threats by limiting the potential attack surface. By implementing IAM solutions, organizations can enforce strict access controls, reduce the risk of unauthorized data access, and maintain data privacy.
Cloud-to-Cloud Backup Solutions
While cloud providers typically have robust data protection measures in place, businesses should not solely rely on them for data backup. Cloud-to-cloud backup solutions provide an additional layer of protection by replicating data from one cloud service to another. This helps mitigate the risk of data loss due to cloud provider mistakes or system failures. Organizations using software-as-a-service (SaaS) applications can benefit from cloud-to-cloud backup solutions, ensuring advanced data protection beyond the basic safeguards provided by the applications themselves.
Systematic Off-boarding Process
When employees leave a company, it is crucial to have a systematic off-boarding process in place to revoke their access rights immediately. According to a survey conducted by Cyberark, “88% of IT workers would take sensitive data with them or abscond with company passwords if they were fired.” Additionally, 50% of ex-employees can still access corporate apps. To prevent unauthorized access and protect sensitive data, organizations should ensure that departing employees’ access rights are promptly revoked. This includes revoking access to systems, data, cloud storage, intellectual property, and consumer information.
Offering Anti-Phishing Training
Phishing remains a prevalent threat in the cybersecurity landscape. Hackers often gain access to secure information by stealing employees’ login credentials or utilizing social engineering techniques. Offering anti-phishing training to employees can help raise awareness about these scams and prevent them from falling victim to phishing attacks. By educating employees on how to identify and report phishing attempts, organizations can safeguard their sensitive data without compromising productivity.
Strengthening Cloud Security Measures
While the above strategies are crucial for securing cloud operations, it is essential to adopt a comprehensive approach to cloud security. Here are additional best practices to strengthen your cloud security measures:
Enforce reliable passwords: Implement password policies that require complex, unique passwords and regular password updates. Encourage the use of password managers to reduce the risk of weak passwords.
Use encryption: Encrypting sensitive data helps protect it from unauthorized access. Implement encryption measures for data at rest and in transit.
Test security continuously: Regularly conduct vulnerability assessments and penetration testing to identify and address security weaknesses in your cloud infrastructure. This proactive approach ensures that potential vulnerabilities are discovered and remediated before they can be exploited.
Ensure local backup: In addition to cloud-to-cloud backup solutions, consider implementing local backups of critical data. This provides an extra layer of protection in case of cloud provider outages or data loss incidents.
Implement additional security measures: Explore additional security solutions such as intrusion detection systems (IDS), firewalls, and data loss prevention (DLP) tools to enhance your overall cloud security posture.
Avoid storage of sensitive data: Minimize the storage of sensitive data in the cloud. Identify and classify data based on its sensitivity and apply appropriate security controls accordingly. This reduces the risk of data breaches and ensures compliance with data protection regulations.
Why Is Cloud Security Important?
Cloud security is crucial for organizations migrating their sensitive data and applications to the cloud. By adopting secure cloud practices, businesses can protect highly sensitive data from hackers and ensure compliance with regulatory requirements. Here are a few reasons why cloud security is important:
Control Access
Cloud security enables organizations to monitor and regulate access to their data. By formulating policies and implementing access controls, businesses can prevent unauthorized users from accessing sensitive information. Cloud management tools provide visibility into user behavior and help maintain strong access controls.
Encrypting Sensitive Data
Encryption plays a vital role in securing data in the cloud. By encrypting data at rest and in transit, organizations can protect it from unauthorized access. Implementing encryption with strong access and control policies minimizes the impact of compromised keys and ensures data confidentiality.
Using Automation
Automation helps minimize human errors and misconfigurations in cloud environments. By automating routine tasks and configurations, organizations can ensure that their infrastructure is deployed and maintained correctly. Cloud automation tools streamline everyday configuration items and provisioning, reducing the risk of security vulnerabilities.
Extend Vulnerability Management Tools
Vulnerability management tools scan networks to identify potential threats or weaknesses that attackers can exploit. These tools help manage and mitigate attacks on the network by suggesting remedies and actions to reduce the prospect of network breaches. Regular scanning and remediation of vulnerabilities are essential to maintain a secure cloud environment.
Implementing Enhancements
Continuous improvement is crucial for maintaining cloud security. Organizations should continuously enhance their security measures throughout the entire lifecycle of their operations. As new threats emerge, businesses must adapt and implement necessary enhancements to safeguard against potential risks.
Deploying Multi-Factor Authentication (MFA)
Deploying MFA increases security and authentication for enterprise applications. Weak or reused passwords are a significant cause of data breaches. By implementing MFA, businesses can protect their cloud applications from unauthorized access attempts. Authorized personnel are granted access, minimizing the risk of data breaches.
Local businesses rely on Farmhouse Networking to simplify their cloud security management and enhance overall security posture. Click here to get started.
Cloud + BYOD = massive IT savings and unlimited scalability
Businesses, regardless of their size, need to stay agile, cost-efficient, and scalable to remain competitive. Cloud computing and online storage have revolutionized the way companies operate and handle data. By migrating your business operations to the cloud, you can leverage its numerous benefits to reduce costs, enhance scalability, and ultimately drive greater success. In this article, we’ll explore valuable strategies for harnessing the power of cloud computing and online storage to optimize your business operations.
Cost Reduction:
Cloud computing offers a cost-effective solution for businesses of all sizes. Here’s how you can leverage cloud technology to reduce costs:
Infrastructure cost reduction: By switching to cloud-based infrastructure, you eliminate the need for physical servers, hardware, and costly private data centers. This not only reduces upfront capital expenditure but also eliminates ongoing hardware maintenance / replacement costs.
Pay-as-you-go pricing model: Cloud service providers offer flexible pricing options, allowing you to pay for only the resources you consume. This eliminates the need for adding excess just-in-case capacity, resulting in significant cost savings. You can even turn off some services so you are not paying while you sleep.
Energy efficiency: Cloud computing minimizes energy consumption related to IT hardware. Cloud providers are equipped with highly efficient systems that optimize resource utilization, resulting in reduced energy costs for your business and smaller carbon footprint on the planet.
Scalability and Flexibility:
Cloud computing enables businesses to scale their operations seamlessly. Here’s how you can harness this scalability to grow fast and stay ahead:
Elasticity: Cloud-based systems can automatically scale resource capacity up or down in response to fluctuating demands. This scalability ensures that you can handle traffic spikes, seasonal variations, or sudden growth without any disruption.
Multi-region availability: Cloud platforms offer the ability to deploy your resources across multiple geographic regions. This redundancy guarantees uninterrupted service availability, even if a specific region experiences an outage or disruption.
On-demand resource provisioning: Cloud infrastructure allows you to quickly provision additional resources as your business expands. This eliminates the need for long wait times to procure and set up physical hardware.
Enhanced Collaboration and Accessibility:
Cloud-based storage and collaboration tools can revolutionize the way your team works. Here’s how to leverage the cloud for improved collaboration:
Centralized data management: Cloud storage solutions enables sharing of documents, pictures, videos, and other files. This eliminates the need for version control issues and multiple physically stored copies, leading to increased overall productivity.
Remote and mobile access: Cloud computing allows employees to access critical data and applications remotely, promoting flexible work arrangements and enhancing productivity. This accessibility ensures that your team remains connected and productive, regardless of physical location – think work from home without the need for VPN.
Real-time collaboration: Cloud-based tools facilitate real-time collaboration, allowing team members to work simultaneously on projects. This boosts efficiency, accelerates decision-making processes, and reduces time-to-market for products and services.
Don’t wait – adopt cloud technology in your business operations and stay ahead of the competition. Contact us today to learn more!
CRM software centralizes customer data and automates sales processes to drive small business growth and retention.
Every business should be constantly seeking ways to manage and grow their customer base. Customer Relationship Management (CRM) software is a powerful solution. With its extensive capabilities, CRM software enables business owners to streamline operations, enhance customer interactions, and ultimately drive business growth.
Streamline Customer Data Management
A primary advantages of CRM software is its ability to centralize customer data. Gone are the days of spreadsheets and scattered information across different departments. CRM software consolidates customer data into a single, easily accessible platform. This comprehensive view of customer information allows business owners to gain valuable insights into customer behavior, preferences, and buying patterns. With this data at their fingertips, business owners can align their strategies to focus on customer needs more effectively, resulting in higher customer satisfaction and increased sales.
Enhanced Customer Interactions
CRM software empowers businesses to forge stronger relationships with their customers. By tracking customers’ interactions and preferences, businesses can personalize their approach and provide tailored experiences. CRM also enables businesses to automate routine tasks such as email marketing, follow-ups, and appointment setting / reminders. This automation not only saves time and effort for business owners and employees but also ensures consistent and timely communication with customers. A personal touch, combined with timely responses, fosters trust and loyalty, and ultimately contributes to business growth.
Improved Sales and Marketing Strategies
CRM software provides invaluable assistance when it comes to sales and marketing strategies. By tracking the entire sales process, from lead generation to closing deals, CRM enables businesses to identify areas of improvement and refine their sales strategies. Additionally, CRM software enables targeted marketing campaigns by segmenting customers based on various factors such as demographics, purchase history, and preferences. By reaching out to the right customers with personalized offerings, businesses can significantly boost their marketing ROI and achieve higher conversion rates.
Efficient Task and Team Management
Efficient task and team management play a pivotal role in business success. CRM software offers features such as task tracking, workflow automation, and team collaboration tools that streamline operations. With tasks assigned and tracked within the CRM system, businesses can ensure that nothing falls through the cracks. Moreover, CRM software facilitates collaboration among team members, improving communication and coordination. By eliminating redundancies and enhancing productivity, CRM empowers businesses to work smarter and achieve their growth objectives.
Data-Driven Decision Making
Data is king. CRM software equips business owners with real-time analytics and reporting capabilities. By accessing key metrics such as sales forecasting, customer acquisition costs, and customer lifetime value, businesses can make informed decisions and strategic plans. With the ability to measure and analyze their performance, businesses can identify trends, pinpoint areas of weakness, and devise actionable solutions. This data-driven approach mitigates risks and provides a competitive edge in the marketplace.
Investing in a robust CRM solution today will reap immeasurable benefits tomorrow, enabling businesses to thrive in an increasingly competitive landscape. Contact us to embrace the power of CRM software and unlock the full potential of your business.
Year-end technology audit dashboard with critical tasks and compliance status.
As the year comes to a close, we at Farmhouse Networking want to ensure that your business technology is in optimal shape for a successful transition into the new year. We’ve put together a checklist to help you wrap up the year on a technologically high note. Some of these items we will work on together, and others will be the responsibility of your team.
Items we will work on together:
Asset Inventory: We have recently conducted a thorough review of your technology assets, including hardware, software, and networking equipment. We updated your inventory list to account for any additions or retirements of assets throughout the year. You should be receiving an invite to our new system called Narmada which gives you constant access to our replacement recommendations.
Password Security: Prompt your team to implement multi-factor authentication for critical systems and applications. This will help to enhance password security. This is not something that should be put off till later. Get it setup on every site possible. It can be made easier with a password manager.
Software Updates: We ensure that standard software applications, operating systems, and antivirus programs are up to date with the latest patches and updates. If you have industry specific software it would be a good time to check with them on the status of your support contract and if there are needed updates.
Data Backups: Verify that your data backup systems are functioning correctly. Test the restoration process to confirm that your business can recover essential data in the event of a disaster. If you don’t have backups in place now is the time to get this critical technology in place.
Security Assessment: Conduct a Security Risk Assessment to identify and address potential vulnerabilities. Ensure that your cybersecurity measures are up to date to protect against evolving threats. Many companies don’t realize that current compliance standards require this.
Employee Training: Provide cybersecurity training to employees to reinforce best practices and raise awareness about potential threats. This should be mandated by your team’s management.
Items you should work on with your team:
Subscription Reviews: Review and audit all software and service subscriptions to ensure they align with your business needs. Cancel any unnecessary subscriptions to optimize costs.
Budget Review: Evaluate your technology budget for the year and identify any areas where adjustments may be needed for the upcoming year.
Technology Roadmap: Develop or update your technology roadmap for the coming year, aligning it with your business goals and objectives.
Compliance Check: Ensure that your technology practices comply with industry regulations and standards applicable to your business.
Communication Plan: Communicate any upcoming changes or upgrades to your team to ensure a smooth transition without disruptions.
Policies & Procedures: Review current documentation to make sure that it includes all needed items like disaster recovery, incident response, computer use, BYOD, and AI usage.
Once you have determined some of your goals and budget, we should meet to discuss the implementation plan for any changes. We will be contacting you in February to setup our next Semi-Annual Business Review (SABR) meetings to discuss this years plan.
If you have any questions or need assistance with any of these items, please don’t hesitate to reach out to our support team. We’re here to help you navigate the year-end process and ensure a seamless start to the new year.
IT tax deductions: Section 179 bonus depreciation cybersecurity software.
It’s that time of year, business owners need to start thinking about tax deductions and ways to maximize profit protection. One area not to be overlooked is IT expenses since IT plays a crucial role in every business. The good news is that many IT expenses can be deducted from your taxes. From hardware and software purchases to cybersecurity measures and cloud services, there are several essential IT tax deductions that can help you lower your tax bill and keep more money in your profit column.
IT Tax Deductions for Business Owners
As a business owner, it is crucial to recognize the importance of taking advantage of IT tax deductions before the end of the year. These deductions can significantly impact your bottom line. By deducting IT expenses, you are not only reducing your tax liability but also creating funds to re-invest in the growth of your business and upgrading to the latest technology, which positions your business for long-term success.
IT Tax Deductions to Maximize Your Savings
Take advantage of these IT tax deductions to maximize their profit savings:
Software and Hardware Expenses: Deducting the cost of industry specific software and hardware purchases is an excellent way to save on taxes. Whether you invested in new computer systems or upgraded your existing software, remember to include these expenses in your deductions as capital expenditures. Profit savings can be compounded by taking the amount saved through IT tax deductions and spending it on further software and hardware purchases.
Cybersecurity Measures: With the increasing threat of cyberattacks, investing in cybersecurity measures is crucial. These expenses can also be deducted from your taxes. From firewalls to antivirus software, make sure to claim any cybersecurity investments you have made throughout the year.
Cloud Services: Many businesses have moved to using cloud services for their storage and daily operations. These operational expenses are also eligible for tax deductions. Whether you use cloud computing, backup services, or cloud-based software, remember to include these costs in your deductions.
By focusing on these essential IT tax deductions, you will minimize your tax liability and position your business for success in the coming year.
Consulting with a Certified Public Accountant
While it’s important to have a basic understanding of the IT tax deductions for your business, it is equally important to consult with a certified public accountant. A knowledgeable CPA can provide you with personalized financial advice and guidance based on your company’s unique situation.
Tax laws and regulations are constantly changing, and it can be challenging to keep up with all the updates. By working closely with a CPA, you can stay updated on the latest deductions and strategies to maximize your savings while staying compliant with the law. They can review your financial records, identify missed deductions, and help you make informed decisions that positively impact your bottom line.
Remember, seeking advice from a tax professional will not only help you optimize your profit savings but also give you peace of mind knowing that your tax returns are accurate and in line with the regulations.
Keeping Detailed Records
One essential practice for maximizing your IT tax deductions is keeping detailed records of your IT expenses. Maintaining accurate and organized records throughout the year can help you claim all eligible deductions at tax time.
Start by creating a system to track and categorize your IT expenses. This can include items like software and hardware purchases, IT services, website development costs, and data storage fees. Keep receipts, invoices, and any supporting documents for each expense. Having detailed records allows you to easily identify and calculate eligible deductions. It also provides evidence and documentation if you ever face an audit or need to justify your deductions to the IRS.
Consider using accounting software or cloud-based platforms to streamline the record-keeping process. These tools can help you track expenses, generate reports, and ensure accuracy in your financial records. By maintaining detailed records of your IT expenses, you not only ensure that you are taking full advantage of available deductions, but you also create a solid foundation for your overall tax strategy.
Utilizing Section 179 Deductions
Section 179 of the tax code allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year. By utilizing Section 179, you can deduct the entire cost of eligible technology investments in the year they are purchased. This deduction can help reduce your overall tax liability, allowing you to maximize your profit savings.
To qualify for Section 179 deductions, the equipment or software must be used for business purposes more than 50% of the time. This deduction is particularly beneficial for businesses investing in technology upgrades or replacements, as it encourages the adoption of new and improved IT systems. Be sure to consult with a tax professional to determine the eligibility of your IT investments for Section 179 deductions and to ensure you are maximizing this deduction for your business.
Bonus Depreciation for IT Purchases
Business owners can also benefit from bonus depreciation for their IT purchases. Bonus depreciation allows businesses to deduct a percentage of the cost of qualifying assets in the year they are placed in service. Under the Tax Cuts and Jobs Act, businesses can take an 80% bonus depreciation deduction for qualified property acquired and placed into service in 2023, then depreciate the remaining 20% over the course of several years.
To qualify for bonus depreciation, the property must have a recovery period of 20 years or less and be purchased for business use. This deduction is particularly valuable for businesses that are investing in new IT equipment or upgrading their existing technology infrastructure.
By timing your IT purchases strategically, you can take full advantage of bonus depreciation and significantly reduce your tax liability. However, it’s important to note that bonus depreciation is subject to change based on tax laws and regulations, so consulting with a CPA is crucial to ensure compliance and maximize your savings.
Research and Development Tax Credit
While bonus depreciation and Section 179 deductions are great for maximizing your tax deductions when it comes to IT purchases, there is another valuable tax credit that often goes unnoticed – the Research and Development (R&D) tax credit.
The R&D tax credit is designed to incentivize businesses to invest in innovation and development activities. Many business owners mistakenly believe that this credit is only applicable to scientific or technological research. However, the R&D tax credit is much broader than that and can apply to a wide range of industries and activities.
To make the most of the R&D tax credit, it’s important to keep detailed records of your qualifying activities and expenses. Consult with a tax professional who specializes in this area to ensure that you are maximizing your tax savings while staying compliant with the IRS requirements.
To make best use of your IT tax deduction spending, contact us to discuss new purchases and upgrades.
It has become increasingly crucial for businesses to prioritize cybersecurity. We all need to be proactive in safeguarding sensitive information and protecting against cyber threats. The National Institute of Standards and Technology (NIST) has been providing standards for cybersecurity practices. We will now delve into the updates and key changes in the fourth revision of the renowned NIST 800-53 publication.
Expanded Scope: NIST 800-53 Revision 4 broadens the standards scope to include private sector organizations dealing with sensitive information. This expansion reflects the need for all companies to implement cybersecurity best practices.
Threats and Vulnerabilities: This revision incorporates emerging threats and vulnerabilities faced by organizations today, such as advanced persistent threats, insider threats, supply chain risks, and cloud computing challenges. It emphasizes the importance of a comprehensive approach to identify and mitigate these risks effectively.
Security and Privacy: NIST 800-53 Revision 4 highlights the connection between security and privacy. The guidelines provided help organizations maintain the delicate balance of ensuring data protection while respecting privacy rights.
Continuous Monitoring and Assessment: One significant change is the emphasis on continuous monitoring. Instead of periodic assessments, companies are urged to implement an ongoing, systematic approach to monitor security, identify vulnerabilities, and respond to them in real-time. This proactive approach helps in detecting and mitigating threats promptly.
Role-Based Access Controls (RBAC): Another notable addition is the strengthening of Role-Based Access Controls (RBAC). This approach ensures that users only have access to the information and functions that are needed to complete their jobs. Implementing effective RBAC helps minimize the risk of unauthorized access, privilege escalation, and data breaches.
Supply Chain Risk Management (SCRM): Revision 4 also emphasizes the need for proper Supply Chain Risk Management (SCRM) practices. It recommends involving suppliers and stakeholders in security assessments and due diligence processes to mitigate risks associated with third party software, hardware, and services.
Remember, cybersecurity is a journey, not a one-time event. Stay vigilant, adapt to evolving threats, and contact us to create a comprehensive cybersecurity strategy to safeguard your business assets and reputation.
Farmhouse Networking cloud automation eliminates manual IT tasks for Oregon SMBs using Power Automate and PowerShell workflows.
Worked with a client lately to help them Automate a workflow, but you may be wondering what does that even mean. Let me explain. We all have tasks in our workday that are repetitive and consume little bite size pieces of our time. Depending on the steps needed to accomplish these tasks, they can be “delegated” to a computer process via scripting aka we automate them. In the case of the client we helped, they received emails from an eFax service which included attachments. These attachments had to be manually saved into a shared folder for the rest of the staff to access as needed. This process probably took about 30 to 60 seconds each, but multiply this by the 30+ faxes they received each day you have 15 to 30 minutes of wasted time each day (65-130 hours per year). This does not take into account the time taken to stop doing one thing, accomplish this task, and restart the original thing they were doing.
Automate to Freedom
What if we could automate this little task and keep them employee free to do other more important things? We did. They customer uses Office 365 which includes a service called Power Automate. We scripted this tool to look at incoming messages, find ones from the eFax vendor, strip out the attachment, and save it to a SharePoint folder. This can then be shared with other employees and even synced via OneDrive to their Desktops for viewing, etc. That is just the tip of the iceberg as there is so much more that can be done with this technology.
If your company wasting little bite size pieces of time in repetitive taks, then contact us for assistance.
Farmhouse Networking secures vendor access with zero trust verification for Grants Pass businesses, protecting against supply chain threats.
This is the second in a series about the concept of Zero Trust, which means in the IT sense that you trust nothing and always verify everything surrounding and connected to your network. Today’s discussion will be on the vendors you purchase network equipment from.
Trusted Vendors
Trusted vendors are those who supply workstations, servers, routers, switches, power protection, software, and anything else connected to your network. Here are some questions that you should be asking yourself:
Do you know who makes your network equipment, servers, computers, and software?
Do you know the way to contact their support and have current account access information?
Do you have current warranties / support contracts on hardware and software?
Is the hardware able to perform at the level needed?
Are you purchasing software from those who meets industry standards?
If a subscription, how much are you paying and are you on the correct plan for your needs?
When is the last time you upgraded your software and hardware?
Have you budgeted for the next upgrade?
Take time to think about these questions and decide where changes can be made to better protect your IT investments, or contact us to do the thinking for you.
And God will generously provide all you need. Then you will always have everything you need and plenty left over to share with others. As the Scriptures say,
“They share freely and give generously to the poor. Their good deeds will be remembered forever.”
For God is the one who provides seed for the farmer and then bread to eat. In the same way, he will provide and increase your resources and then produce a great harvest of generosity in you. - 2 Corinthians 9:8-10
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