From sales and marketing to legal and accounting, technology touches every part of a business. But as technology evolves and business needs change, it becomes increasingly difficult to budget for IT expenses.
Before you begin creating your IT budget
Before you can create an effective budget, you’ll need to evaluate your current IT landscape and assess the risks in your environment.
Preparing an IT budget
IT budgets should cover the entire organization and include everything that is a technology-related expense, regardless of which department uses the technology.
IT budgets should also document annual and monthly recurring expenses, as well as initial costs for any hardware installations or upgrades.
An IT budget should provide a cost breakdown of the following systems and services:
- Hardware installation and upgrades (servers, routers, workstations, and other networking equipment)
- Software licenses and subscriptions, including hosted applications
- Cloud services
- Internet and telephone
- IT Infrastructure maintenance
- IT salaries
Your company’s IT budget should outline 12 months of expenditures, including initial costs for new projects and ongoing costs related to maintenance. Even though your budget will only cover 12 months of expenses, look 18 to 24 months ahead to ensure your company is effectively budgeting for future IT projects.
Save now, pay later
IT budgets predict the funding that keeps the IT department—and your business—running. They’re a critical part of taking projects from conception to completion.
If you want to learn more about budgeting for your IT department, talk to our IT consulting team today!