Claim Section 179, cloud subscriptions, cybersecurity as business tax deductions.
As we approach the end of the year, it’s crucial for businesses to understand the tax deductions available for their IT expenses. Maximizing these deductions can significantly reduce your tax burden and free up capital for further investment in your company’s technology infrastructure. Let’s explore the top tax-deductible IT expenses for 2024 that every business should be aware of.
Hardware and Equipment
Computers and Devices
Investing in new computers, tablets, or smartphones for your business can provide substantial tax benefits. The entire cost of these devices can be deducted from your taxable income. However, if the equipment is used partially for personal purposes, you may only be able to deduct a portion of the cost.
Office Equipment
Printers, scanners, and other office equipment are 100% tax-deductible in the year of purchase. This includes any IT-related furniture, such as ergonomic chairs or standing desks for your tech team.
Software and Services
Business Software
Software used for business purposes is eligible for tax deductions. This includes:
The deductible amount will depend on whether the software is purchased outright or subscribed to on a monthly basis.
Cloud Services
As more businesses move their operations to the cloud, it’s important to note that cloud service subscriptions are tax-deductible. This includes services like:
– Data storage – Backup solutions – Cloud-based productivity suites
Telecommunications
Internet Expenses
Internet services are crucial for most businesses today. You can deduct the full cost of your business internet connection[. If you work from home, you may be able to deduct a portion of your home internet expenses based on the percentage used for business purposes.
Phone Systems
All telecommunications fees within a commercial space can be deducted[1]. This includes:
– Business phone lines – VoIP systems – Cell phone contracts used for business
IT Services and Support
Managed IT Services
Fees paid for managed IT services, including network management, cybersecurity monitoring, and help desk support, are fully deductible as a business expense.
IT Consulting and Training
Any costs associated with IT consulting or training for your staff to use new technologies are tax-deductible. This can include workshops, online courses, or one-on-one training sessions.
Cybersecurity Measures
With the increasing importance of data protection, investments in cybersecurity are not only wise but also tax-deductible. This includes:
– Firewalls and antivirus software – Security audits – Employee cybersecurity training programs
Website Expenses
Development and Maintenance
Costs related to developing, hosting, and maintaining your business website are tax-deductible. This includes domain registration fees, hosting costs, and payments to web developers or designers.
E-commerce Solutions
If your business sells products online, the expenses for e-commerce platforms and payment processing systems are also deductible.
Home Office Technology
For those running businesses from home or with remote workers, the home office deduction can apply to technology expenses. You can deduct a portion of your home internet, personal computer use, and other tech equipment based on the percentage of your home used exclusively for business.
Ready to optimize your IT infrastructure while maximizing your tax benefits? Contact Farmhouse Networking today. Our expert team can help you implement cutting-edge IT solutions that not only boost your productivity but also provide substantial tax advantages. Don’t leave money on the table – let us help you navigate the complex world of IT expenses and tax deductions. Reach out now to schedule a consultation and start saving!
B2B leaders embracing Industry 4.0: Connect for smart manufacturing and automation opportunities
Small manufacturers are discovering the transformative power of Industry 4.0 technologies. By leveraging smart technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and machine learning, these businesses are not only staying competitive but also revolutionizing their manufacturing processes. Let’s explore how these cutting-edge tools can benefit small manufacturers and propel them into the future of production.
The Power of Real-Time Data
One of the most significant advantages of smart manufacturing technologies is the ability to harness real-time data. By integrating IoT sensors into production lines, small manufacturers can gain unprecedented visibility into their operations. This continuous stream of information allows for:
Improved Cost Control: Real-time monitoring helps identify inefficiencies, reduce waste, and optimize resource allocation, leading to significant cost savings.
Enhanced Supply Chain Management: With up-to-the-minute data on inventory levels and production rates, manufacturers can make informed decisions to keep their supply chains running smoothly.
Proactive Maintenance: IoT sensors can detect early signs of equipment wear, allowing for predictive maintenance that prevents costly downtime and extends machinery lifespan.
AI-Powered Decision Making
Artificial Intelligence is revolutionizing how small manufacturers approach decision-making and problem-solving. By leveraging AI technologies, businesses can:
Optimize Production Schedules: AI algorithms can analyze complex data sets to create efficient production schedules that maximize resource utilization and meet customer demands.
Enhance Quality Control: Machine learning models can identify subtle patterns in production data, helping to detect and prevent quality issues before they escalate.
Personalize Customer Experiences: AI-powered recommendation engines can offer tailored product suggestions, improving customer satisfaction and driving sales.
Machine Learning for Process Optimization
Machine learning is proving to be a game-changer for small manufacturers looking to streamline their operations. This technology offers several key benefits:
Predictive Analytics: By analyzing historical data, machine learning algorithms can forecast future trends, helping manufacturers make proactive decisions about production, inventory, and maintenance.
Automated Quality Assurance: Machine learning models can be trained to detect defects or anomalies in products with high accuracy, reducing the need for manual inspections.
Process Optimization: Through continuous analysis of production data, machine learning can identify opportunities for process improvements, leading to increased efficiency and reduced costs.
Overcoming Implementation Challenges
While the benefits of Industry 4.0 technologies are clear, small manufacturers may face challenges in adoption. These can include:
Data Security Concerns: As more devices become connected, ensuring the security of sensitive manufacturing data becomes crucial.
Investment Costs: Implementing new technologies often requires upfront investment, which can be daunting for smaller businesses.
Skills Gap: Adopting advanced technologies may require upskilling existing staff or hiring new talent with specialized expertise.
The Path Forward
Despite these challenges, the potential rewards of embracing Industry 4.0 technologies far outweigh the risks. Small manufacturers who invest in smart technologies position themselves for:
– Increased competitiveness in the global market – Improved operational efficiency and cost savings – Enhanced product quality and customer satisfaction – Greater agility in responding to market changes
As we move further into the digital age, the adoption of smart manufacturing technologies is no longer a luxury—it’s a necessity for small manufacturers who want to thrive in an increasingly competitive landscape.
Ready to take your manufacturing operations to the next level? Don’t let the complexities of Industry 4.0 technologies hold you back. Contact Farmhouse Networking today to learn how we can help you implement smart manufacturing solutions tailored to your unique needs. Let’s work together to unlock the full potential of your manufacturing business and pave the way for a smarter, more efficient future.
Cybersecurity Skills Through Innovative Funding Program
Innovative funding accelerates cybersecurity training for stronger team defenses.
Farmhouse Networking, a leading provider of managed IT services, today announced a groundbreaking initiative to enhance its cybersecurity capabilities by leveraging the Rogue Business Elevate program to fund comprehensive cybersecurity training for all employees through TryHackMe. Farmhouse Networking is taking proactive steps to fortify its clients’ defenses and cultivate a culture of cybersecurity awareness across all the organization it supports. By partnering with Rogue Business Elevate and TryHackMe, the company is demonstrating its commitment to staying ahead of potential security risks while investing in the professional development of its workforce.
Empowering Employees with Cutting-Edge Skills The TryHackMe platform offers an innovative, gamified approach to cybersecurity education, making the learning process both engaging and effective .Employees will have access to:
Interactive lessons that bridge theory and practice
Simulated network environments for hands-on experience
Real-world challenges based on actual cybersecurity scenarios
This comprehensive training program will equip Farmhouse Networking’s staff with the skills to identify, prevent, and respond to a wide range of cyber threats.
Investing in the Future of Cybersecurity “At Farmhouse Networking, we recognize that our employees are our first line of defense against cyber attacks for many businesses throughout Oregon,” said Scott G. Carr II, CEO of Farmhouse Networking. “By investing in their skills through this innovative funding program and partnering with TryHackMe, we’re not just enhancing our clients’ security posture; we’re also providing our team with valuable, career-advancing knowledge.” The initiative aligns with Farmhouse Networking’s long-term strategy to build a resilient and knowledgeable workforce capable of addressing the complex cybersecurity challenges faced by businesses today.
Community and Collaboration Beyond individual skill development, this program will foster a sense of community among Farmhouse Networking’s employees. TryHackMe’s platform encourages collaboration, allowing team members to connect with like-minded professionals, share knowledge, and learn from each other’s experiences. Farmhouse Networking’s innovative approach to employee development and cybersecurity preparedness sets a new standard in the industry. By leveraging the Rogue Business Elevate program to fund this initiative, the company is maximizing its investment in both its people and its technological defenses.
Cybersecurity isn’t just an option—it’s a necessity. At Farmhouse Networking, we’re not only enhancing our own security measures but we’re also ready to help you fortify your defenses. Don’t wait for a breach to happen. Take proactive steps to protect your business today. Contact Farmhouse Networking today for a free consultation. Let’s work together to create a robust security strategy that safeguards your business, your data, and your peace of mind.
Use clear metrics like response time, uptime, and customer satisfaction to see if your IT provider is truly doing their job.
Businesses heavily rely on their IT providers to ensure smooth operations, enhance productivity, and safeguard data. However, determining whether your IT provider is doing their job effectively can be challenging. Here are some key indicators and evaluation criteria to help you assess their performance.
Quality of Service
1. Response Time and Resolution: A reliable IT provider should have short response times and lasting resolutions. Track how quickly they respond to issues and how often they resolve problems on the first attempt. Consistent delays or repeat issues may indicate they aren’t able to take care of your business properly.
2. Service Quality and Expertise: Evaluate the technical expertise of your IT provider. They should have a proven track record and relevant industry experience. Their ability to manage complex IT environments and provide innovative solutions is crucial.
Cost and Value
1. Cost Structure: Analyze the cost of your IT services, focus on the overall value of what they provide. A transparent pricing model with no hidden fees is also preferable.
2. Budget Management: Your IT provider should help you maintain a predictable IT budget. Proactive management of IT infrastructure should prevent unexpected costs and downtime.
Reliability and Security
1. Uptime and Availability: Assess the reliability of your IT provider in terms of network uptime and system availability. Downtime can lead to significant business losses, so aim for a provider with strong customer centric service level agreements (SLAs) that guarantee high uptime.
2. Security Measures: Inquire about the provider’s security protocols and compliance with regulations like PCI, CMMC, or HIPAA. A comprehensive security framework is essential to protect sensitive data from cyber threats .
Communication and Support
1. Communication Channels: Evaluate the effectiveness of the provider’s communication. They should offer multiple channels for support and maintain open, proactive communication about system updates or maintenance. You should not have to call them for issue status.
2. Customer Support: A dedicated support team can significantly enhance the user experience. Ensure that your provider offers readily available customer support and is responsive to inquiries .
Strategic Alignment
1. Business Understanding: Your IT provider should demonstrate an interest in your business strategy and goals. They should be involved in strategic discussions and provide technology solutions that align with your long-term objectives.
2. Flexibility and Scalability: The ability to customize services to meet your unique needs and scale them as your business grows is a valuable trait in an IT provider. This flexibility can enhance the overall value of their services. Your company should not have to bend to their technology stack.
Regular assessments and open communication with your provider can help ensure that they continue to meet your evolving needs. If you have doubts about your current IT provider, contact Farmhouse Networking to provide a free network evaluation.
Not every business fits our co-managed IT model—this image shows when the partnership puzzle pieces dont align between your team and ours.
Wanted to take a look at why prospective customers would not want Farmhouse Networking to be their Managed IT Service Provider. This article will be a little tongue-in-cheek, but will hopefully give you a fresh perspective on what to look for in a Managed IT Service Provider.
Why You Don’t Want to Work with Us
We are IT Experts: They will point fingers and blame others instead of taking ownership of your IT problems. Who needs real solutions to problem or to do things the right way the first time – Band-Aid the issues until they go away themselves.
We know your software and hardware: There are lots of other Managed IT Service Providers who are IT generalists who have no experience in your industry who will charge you for their time while they stumble through fixing things.
We live answer our phones: Why would you want to talk to a human who cares when you can simply leave voicemails and hope for a callback? Better yet you can spend your day in the maze of an automated phone menu trying to get to the department that is in charge of your problem.
We communicate: Who really needs to know what is going on with the tickets that are submitted? Isn’t it easier to just make a ticket and have faith in your Managed IT Service Provider to finish the task. It’s even better when they take over your computer and reboot the server before you can save anything.
We only hire the best: There are so many Managed IT Service Providers who are willing to hire just anyone and let them pretend to know how to fix your problems.
We’re local: Who wants to have their computer issues handled by someone in their own country let alone within range to be able to show up quickly when things are really broken? Outsource everything important to your business to the lowest bidder from whatever country and make sure that they are unable to communicate effectively in English.
We’re established and growing: Fly-by-night companies are the way to go. Call up the company that advertises on obscure streaming videos to handle precious customer data.
In all seriousness, take time to think about who is your company’s Managed IT Service Provider and how they are treating you. Consider Farmhouse Networking to take better care of your IT needs.
We saved one client $1600 through targeted server optimization—real results from managed IT that reduces costs without sacrificing performance.
It’s story time again!
This time we will be telling the story of Dr. Nick one of our monthly IT service clients. Back in March, Farmhouse Networking began the process of migrating Dr. Nick’s chiropractic office from their old server to a new one. After carefully preparing the server we contacted their practice management software vendor to get the software moved from the old to the new. The vendor simply asked us to provide them with remote access to the server to allow their techs to do the migration. During this process their tech asked our junior tech who was just there to babysit the process a question about the configuration of the old server. Our tech responded that he was not sure and the software vendor’s tech proceeded to follow his process for setting up the server.
A couple of months go by and we at Farmhouse Networking notice that the new server is not performing as fast as it should be. We investigate the issue and find out that the software vendor’s had installed a free version of a critical piece of the software puzzle instead of re-using the license Dr. Nick had already purchased. Farmhouse Networking then went to the software vendor and explained the issue. We went back and forth with them for months to get them to the point where they finally agreed that they were at fault for the upgrade problem and agreed to pay for the software license to complete the puzzle and fix the speed issue that Dr. Nick and his team were experiencing.
The moral of the story is that Dr. Nick did the right thing by having a support contract with a managed IT service provider, like Farmhouse Networking, who would take ownership of the problem and see it through to the best possible outcome.
CrowdStrike Falcon update triggers massive IT outage across cloud services
The recent CrowdStrike IT outage on July 19, 2024, caused by a defective update for Windows, serves as a stark reminder of the importance of managing IT infrastructure and proactive measures to prevent system downtime. While no system is entirely immune to outages, there are several strategies businesses can implement to minimize the risk and impact of such incidents.
Key Strategies to Prevent IT Outages
Improve Continuous Integration / Continuous Deployment (CI/CD) Practices: One of the most effective ways to prevent outages caused by software updates is to enhance CI/CD practices. This approach involves:
Automating the testing and deployment process
Implementing rigorous quality assurance checks
Using staging environments to test updates before full deployment
Gradually rolling out updates to detect issues early
By improving CI/CD practices, businesses can catch potential issues before they affect the entire network, reducing the likelihood of widespread outages.
Implement Comprehensive Load / Failure Testing: Regular load testing is crucial to ensure that systems can handle typical use cases and determine their potential in high use scenarios. A game plan should also be put in place for when systems fail to map out the road to recovery. This involves:
Simulating various levels of user activity
Identifying performance bottlenecks
Optimizing system architecture and configuration
Preparing for crisis scenarios, such as partial resource failures
Practice response to system failures before they become reality
Load / failure testing helps businesses understand their system’s limitations and address potential issues before they lead to outages.
Ensure Proper Scalability: As businesses grow, their IT infrastructure must be able to scale accordingly. This includes:
Designing systems with future growth in mind
Utilizing cloud technologies for flexible resource allocation
Regularly reviewing and updating system architecture
Implementing efficient systems that can handle increased business
Proper scalability ensures that systems can continue to function effectively as demand increases, reducing the risk of outages due to overload.
Enable Automatic Updates with Caution: While automatic updates can help keep systems secure and up-to-date, they should be implemented carefully. Best practices include:
Testing updates in a controlled environment before widespread deployment
Staggering updates across different system components
Having a rollback plan in case of issues
Monitoring systems closely after updates are applied
Automatic updates can help prevent security vulnerabilities, but they must be managed carefully to avoid introducing new issues.
Implement Comprehensive Monitoring: A robust monitoring system is essential for detecting and addressing potential issues before they escalate into outages. This includes:
Using a centralized monitoring platform for all IT infrastructure
Outsourcing it management is resources are not available
Setting up alerts for unusual system behavior or performance metrics
Implementing predictive analytics to identify potential issues early
Regularly reviewing and updating monitoring parameters
Comprehensive monitoring allows businesses to take a proactive approach to system management, reducing the risk of unexpected outages.
Conduct Regular Employee Training: Human error is a common cause of IT outages. Regular employee training can help mitigate this risk. Training should cover:
Best practices for system usage
Recognizing and reporting potential security threats
Proper procedures for applying updates and patches
Emergency response protocols in case of system issues
Well-trained employees are less likely to make mistakes that could lead to outages and are better equipped to respond effectively when issues do occur.
Don’t let IT outages disrupt your business. Take action now to protect your company’s technology infrastructure. Call Farmhouse Networking today at (541) 761-9549 to schedule a comprehensive IT assessment and learn how our expert team can implement strategies to prevent costly downtime. Secure your business’s future with proactive IT management.
We pray daily for client prosperity, protection, and thriving businesses
We are a faith forward company and part of our expression of the faith is our interaction with our clients.
Why pray?
We meet with our clients twice a year and during those meetings we discuss what is going on in their business. Part of this discussion is asking our clients if there is anything that we can be praying for their business or personally. Our owner believes in the power of prayer and takes each of these requests to God in prayer each morning. We have seen specific and powerful answers to our prayers, so we give God the credit for that.
If you or your company would like to be prayed for each morning then contact us and we will lift them up in prayer.
Our billing practices make us unique by offering clear, predictable pricing and no hidden fees for co‑managed IT services.
Our owner, Scott Carr, has been working in the Managed IT Service Provider (MSP) and computer support industry for over 30 years. During that time he owned several different companies and has worked for other larger MSPs. The main take away from this experience is that other companies are out for profit at the expense of the client’s business success. They bill for their time and hardware in ways that make them the most money without concern about whether it is a good fit for the client.
So what are your billing practices?
Hourly billing: Farmhouse Networking has always had the policy that to bill clients for a full hour when only working on the task for couple of minutes is just taking more than our fair share. We decided from the beginning to bill our clients in 15 minute increments to keep billing honest and fair to the companies we serve.
Contracts: For years, Farmhouse Networking would only have month-to-month contracts with all of its monthly managed clients. We recently made the change to shielding our clients from inflationary price increases by having them sign a year contract to lock in prices for that term. We still offer month-to-month contracts for our clients who want the freedom that kind of agreement brings.
Hardware: When Farmhouse Networking takes on the management of a new client, we do not have requirement for clients to change out their hardware to using only the vendors that we recommend. We work with the client to develop a 5-year plan of hardware replacement to spread the costs of keeping equipment up-to-date. We have partnered with several hardware wholesalers to get the best-fit products for our client’s need at the best prices. We cannot compete with major online retailers prices, but trust our clients want to support us and allow us to have the reasonable markup of 15% on the products we sell.
Charity prices: For those companies that meet our charitable donation criteria, Farmhouse Networking offers deeply discounted hourly rates, contract terms, and hardware. We do this so that the causes we believe in are able to better serve those in the deepest need.
If your company is looking to partner with a Managed IT Service Provider that is transparent and fair with their biling practices, then contact Farmhouse Networking to get a free quote.
Co-managed IT delivers unlimited remote support to minimize downtime and enhance productivity
Some may wonder why we include unlimited remote support in our most popular monthly IT managed services contracts. The answer is simple. Our founder worked for other MSPs and has kept tabs on the industry standards and does not agree with how they bill their clients.
How the other guys do it
Block Hour Contracts: There are many managed IT service companies out there who use this model which is very similar to the way many attorneys use a retainer – except in this case it is usually a monthly re-occurring charge. You pay a flat fee for a specified number of hours. The draw back of this is there are some months where you are over paying for the amount of time used and other months where you are charged overage fees.
Per User Contracts: The latest trend is to count the number of employees and charge a per user fee. This may seem appealing to companies with small numbers of users and large numbers of devices. The price for this kind of service is usually very high and the services included in the contract are not always clear. There is just too much room for inflated margins here. There can also be caps on the number of remote hours included in the contract which could result in overages.
How Farmhouse Networking does it
Per Device Contract: We take the average cost of supporting a particular device across all our clients then add a small margin to keep the lights on and our employees fed. There are no hidden fees or hour caps to our most popular monthly IT managed service contracts. Call us during business hours, have the phone answered by our professional staff, get fast and effective support, and go on with your work day.
If you are tired of getting the run around from your current IT service provider, call Farmhouse Networking for simple unlimited remote support.
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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