How to Plan and Budget for Your Company’s IT

Are you in charge of your company’s IT budgeting? If so, it’s time to take a closer look at how you allocate your funds. Here are some tips to get started.  

As a C-level executive, you set the tone for your company’s IT budget. In other words, your vision of IT will decide whether it’s an area you’re ready and willing to invest in or something you still see as a periphery necessity.

Naturally, seeing IT as a periphery necessity is not preferred. This can be a dangerous mindset. IT is so vital to any business’s substructure that without it, you may not have a business at all. As we move forward in time, this will continue to be the case. Automation and increased dependence on the digital world are only increasing.

The bad news is, IT budgeting can be tricky. The complexities of your IT needs will inevitably be complicated. Knowing how to allocate funds will be similarly so.

The following article comprises critical tips for planning IT funds within your company. Use this as a framework to follow when preparing your IT budget in the future.

Planning and Budgeting for Your Company's IT

How to Plan and Budget for Your Company’s IT

Use these tips to create a successful budget for your IT department.

1. Make the transition to rolling forecasting.

Most businesses plan their budgets yearly, but while this may have worked in the past, it’s no longer a useful planning strategy for IT budgets. Instead, we recommend enforcing a rolling forecasting strategy for planning your budget. This means reassessing your budget at the end of each quarter as opposed to doing it annually. The option provides much more flexibility and allows you to react quickly to market or security changes when necessary.

2. Plan ahead for the implementation of automation.

Great strides can be made in efficiency and returns on investment when you implement IT automation tools. A tremendous amount of time and money can be saved. On the other hand, investing in these strategies won’t give you results overnight. You must plan for these tools — both where finances and a learning curve are concerned. Your

MSP can help you come up with the best automation tools for your industry and business. They can also help you plan for investing in these tools and rolling them out.

3. Cross-reference your plans with other departments.

Unlike some departments within your business, IT must interact outside of itself regularly. Its primary purpose is arguably to serve other departments in a myriad of ways. For this reason, you must cross-reference your budgeting plans with the other departments you oversee. Speak with other department heads about what they foresee in terms of IT needs and changes. Many of these specifications will alter your plans for a budget.

4. Remember that your IT plans will change almost constantly.

Rolling forecasting will allow for more frequent budget changes where your IT is concerned, but there are other steps you can take to keep up with ever-changing IT needs as well. Essentially, you need to maintain the mentality that your IT budget is not a stagnant, permanent fixture. Instead, it is something that will need near-constant alterations.

Even if you continue to allocate the same amount of money to your IT department overall, where precisely each dollar goes may change. For example, one quarter, you may require more budgeting for marketing, advertising, data storage, or security.

Speak to Your MSP About Budgeting Recommendations

As a final tip, use your MSP as a resource when it comes to your IT budgeting. Their experience and expertise in IT services can help you make more informed decisions that will support your business long-term.