Why An IT Budget Should Be Part Of Your End of Financial Year Planning
With many businesses currently working on their budget for the new financial year, it’s important to include budgeting for IT. That doesn’t mean simply cutting and pasting the same numbers from last year’s spend and whacking it in this year’s IT budget. Sadly this is more often than not how it’s done, especially in smaller business.
What your IT budget needs to include:
- Hardware replacements – based on the age of your hardware, a budget should forecast when hardware needs to be replaced and expensed into your cashflow.
- Software and licensing renewals – Knowing when software licensing renewals are due and when you are expecting to add new hires and thus increase licensing.
- Telecommunication costs – Your telephony and communications should be considered as part of your IT budget. As services such as streaming, video conferencing and cloud services grow, so too will your Internet and communication requirements. An IT budget should also take into account the growing bandwidth needs of your business.
- IT projects – Major project such as cloud migrations, hardware upgrades, telephony and communication investments should be costed and included in the plans, taking into account when any major payments are due.
- Ongoing costs – Your IT monitoring, support and implementation costs also need to be considered as part of your overall budget.
How to make sure it’s accurate
Ideally, you need a thorough review of your complete IT infrastructure, it’s suitability for your business along with the costs of monitoring and maintaining your IT.
Conducting a full IT Audit as part of the budgeting process can identify any wastage, more cost efficient options and IT investments that will align with your business goals and improve productivity.
Aligning your budget with your business plan
Like a marketing budget or HR budget, your IT budget needs to align with your overall business strategy. Whoever is responsible for putting your budget together should ideally be involved in your strategic planning process.
IT is critical to core business functions such as staff morale, productivity and scaling the growth of your business.
Contact us if you need help with your IT budgeting for the new financial year.