Should You Purchase ERP Software At The End Of The Year?

Published on 21st November, 2017 in SAP Business One by Andrea Vermurlen

Here we are in mid-November and we are looking to answer the question - should you purchase ERP software at the end of the year?  As an SAP partner for SAP Business One, we have been selling ERP software for over 12 years and have had customers buy the software at all times of the year.  That being said there are advantages and disadvantages to making an ERP software purchase at the end of the year.

Advantage:  Better pricing - SAP is a large corporation and are driving for revenue numbers at year end just like many smaller companies.  So if your ERP software purchase is for more than just a handful of users you can most likely negotiate better pricing.

Advantage:  Tax deduction - Have your accountant review your financials and the tax code to see if you could qualify for a deduction for the capital purchase of software.

Advantage:  Apply budgeted funds - If your company budgeted for a software purchase but hasn't completed it yet, and your budget system is use-it or lose-it you may want to commit to purchasing the software before the end of the year.  Use the allocated funds while you can rather than gambling that you will have access to them come next year.

Disadvantage:  Implementation timing - Customers who purchased ERP software earlier did so because they wanted to be "live" on their new software on January 1 to start their new fiscal year fresh.  So more than likely our implementation teams are busy with these projects. It is possible your implementation would need to take place in Q1 of the following year.

In conclusion, the end of the year is a good time to purchase ERP software to get a good deal, use budgeted funds and possibly get a tax break.  Then you can take Q1 of next year to implement and get employees trained on the new system.  Contact us to purchase SAP Business One.

Andrea Vermurlen, Marketing & Sales, Aether Consulting

Andrea handles marketing and sales for Aether Consulting.