Setting a budget for the coming fiscal year can be a challenge. IT budgeting is even more challenging because the numbers greatly vary from one year to the next due to technology advances. With tight budgets everywhere, getting the numbers right is critical. Our IT support team in Wilmington offers advice on getting your IT budget right.
Assess Your IT Processes and Assets
Every part of your IT infrastructure should be assessed before you start creating the budget. Make note of all hardware including laptops, desktops, servers, mobile devices, printers, and network hardware. Do the same for the software you actively use. Be sure to note any customizations done to software specifically for your company.
Create workflows for all software processes. How does the sales force track leads, existing customers, orders, etc.? How are work orders managed? How are new hires brought into the company? These workflows will highlight how systems work together.
Look at the Past 12 Months Spending
You need to know where the money for the last fiscal year went. You may find some items that you were not aware of or items being paid out of other budgets that are directly IT-related. Make note of all monies paid to vendors and those not directly managed by the IT department.
Create Your Baseline Budget
With the help of an IT support provider in Wilmington, use a copy of last year's budget to start creating this year's budget. Assess each line item carefully.
- Which items can be eliminated?
- Which items do you need to increase or decrease?
- Is the item worth the difficulty it brings or is there an easier alternative?
- Would a different vendor, server setup, employee, or IT provider do a better job?
- Do you have enough assets focused on cybersecurity?
- Can you give employees better tools to make them more efficient and productive?
Don't skip over the smaller line items. If you don't need it or can find a better option, do it.
Finalize the Budget
With the preliminary budget outlined, it's time to start getting hard numbers. If you are going to replace a vendor, for example, you need to get quotes from other vendors. For every item on your budget, be prepared to defend it. That is where all your assessment work can come to your defense.
Look to the Future
With all this work done, the next logical step is to update your IT roadmap. Make sure the roadmap shows where things have changed and where you project them to be in 2, 5, and 10 years.
We Can Help!
If you need assistance with any IT needs, contact us at Partners Plus, Inc. We offer IT support services for Wilmington businesses.