Creating an IT budget for your business is an important step to ensure that you’re getting the most value for your IT investments. With the right budget in place, your business can save money and invest in technology solutions that support your long-term goals. This ultimate guide will help you understand the process of developing an IT budget and will provide valuable tips and strategies for creating a budget that works for your business.
Assess your current IT infrastructure
A good first step when creating an IT budget is to review those from previous years. This will provide a benchmark from which to start your calculations. That way, you’ll have a better idea of revenue and spending rates across various periods of time. It can then be adjusted to new priorities.
Identify IT expenses
One of the first things to consider when creating an IT budget is any recurring costs, such as:
Staff : in-house, outsourced or both
Network infrastructure and security: data centre, backups, firewalls, VPN, cyber security, support and maintenance contracts
Replacing or upgrading hardware and software: PCs, laptops, servers
Subscriptions and cloud services: productivity software e.g. Microsoft 365, data storage, video conferencing
Line of business applications: CRM, ERP, finance, marketing and HR systems
Telecoms: voice, mobile, internet, data
Peripherals: printing spend, keyboards, mouse, headsets, cables etc.
Determine IT priorities and goals
You will probably know what’s working with your IT strategy and what’s not. Still, it’s always wise to consult with everyone’s opinions– including those from those with less experience than yourself.
If you are the owner of a business or are the person responsible for this big transformation, it’s just as important – if not more – that you be in tune to the needs and preferences of the stakeholders you hope to benefit from your budget. This will ensure that you get the buy-in from these people necessary for the approval of your budget.
If you’re not sure what your next steps are in IT systems and procedures, you may find some use in a professional IT audit.
Consider future technology trends
IT is an important part of everyday operations of most businesses. Your yearly IT budget can help transform your business digitally in order to get ahead of your competitors, while also showing your stakeholders that you are thinking about the future of the company.
An important part of a successful business is growth. When planning out an IT budget, consider future technology trends and how they might help with the growth of your business and how to stay ahead of your competitors.
Allocate resources according to needs
Lithium Systems has a solution that can be tailored to your specific needs, no matter whether you require managed IT or some extra help during peak times. With our fixed monthly fees you can be assured that there will be no unexpected costs and that your IT budget will stay on track. We monitor and maintain your network 24/7 as well as provide remote and onsite IT support as needed.
Monitor and adjust the budget as needed
When it comes to IT budget planning, it can be tempting to reduce costs by delaying or cancelling things like training courses that seem like more of a ‘want’ than a ‘need’.
However, it’s not worth risking the problems this could cause you later down the road. Skipping things like user awareness training may seem like a quick fix but can ultimately cost your business more money in the end, therefore monitoring the budget is important but cutting costs on important items is not recommended.
If you need help with your IT budget get in touch with the experts at Lithium www.lithiumsystems.co.uk