To keep your IT infrastructure up to date, creating an IT budget is crucial for businesses of all sizes. Discover in this article our tips on creating a budget, which is extremely useful for business owners who want to get the best out of their IT.
Looking back
To create a budget that is going to serve your business well, it would be a useful task to look back at what you have spent on IT in the past. Even if you didn’t have a budget, outlining what you spent will help plan for the future. Analyse the revenue and expenses across different timeframes, such as months, quarters, and years. By understanding how the budget has fluctuated in the past, you can make informed adjustments based on predicted changes and new priorities.
Setting your priorities
As an IT manager, you likely have a good understanding of which aspects of your IT strategy are working well and which can be improved. However, it’s essential to gather input from various people in your business, including end users and team leaders. This is especially important for business owners and those responsible for transformation initiatives. By considering the priorities and concerns of end users, you can adjust your strategy and gain their support, which will be instrumental in obtaining budget approval. Conducting an IT audit will help review systems and processes and this could be a good place to start. Contact us for more information and we will be happy to help.
Align with your company goals
IT plays a critical role in the daily operations of many businesses. Your yearly IT budget provides an excellent opportunity to drive digital transformation and gain a competitive edge. By leveraging advanced data analytics, also known as business intelligence, you can integrate all your business reporting into one platform. This integration allows you to cross-reference multiple data sources, save time on manual reporting, and gain a real-time perspective of business performance. This not only improves productivity but also helps identify opportunities for growth and improvement, aligning with the long-term goals of the company.
Identifying expenses
When creating an IT budget, it is important to consider recurring costs. These may include:
Staff:
Determine whether you require in-house, outsourced, or a combination of both IT support.
Hardware and software upgrades:
Plan for the replacement or upgrade of PCs, laptops, servers, and other necessary technology.
Network infrastructure and security:
Account for data centers, backups, firewalls, VPNs, cyber security measures, and support and maintenance contracts.
Subscriptions and cloud services:
Consider productivity software, such as Microsoft 365, as well as data storage and video conferencing solutions.
Line of business applications:
Account for customer relationship management (CRM), enterprise resource planning (ERP), finance, marketing, and HR systems.
Peripherals:
Consider spending on printers, keyboards, mice, headsets, cables, and other accessories.
Telecommunications:
Include expenses for voice, mobile, internet, and data services.
Project expenses
If your company has any upcoming projects, such as significant installations, office moves, or recruitment drives, you’ll need to account for associated IT expenses. These may include setup costs, licensing fees, training, additional hardware requirements, increased IT support needs, and the time commitment required to complete the projects.
Prioritising security
With data breaches becoming more prevalent, it’s crucial to prioritise cyber security in your IT budget. Common causes of data breaches include criminal hacking, human error, and social engineering attacks. To protect your organisation, your budget proposal should address employee training, user awareness programs, and cyber security best practices. Ignoring such cyber security measures would be counter intuitive to your company goals.
Don’t take shortcuts
While it may be tempting to cut costs by postponing or canceling non-essential expenses like training courses, this approach can lead to problems down the road. For example, skipping user awareness training might seem like a quick way to save money, but it can ultimately cost your business more in the long run. Invest in necessary training and resources to ensure your employees are equipped to handle cyber security threats effectively.
Outsourcing your IT to Cambridge Support
Managing an IT budget can be a complex task. Whether you need fully managed IT services or occasional support during peak periods, our outsourced IT services can provide a tailored solution for your business. With fixed monthly fees, proactive monitoring and maintenance, and remote and onsite IT support, we will be happy to assist your IT needs. Contact us today.