Budgeting is essential for any business procuring technology or using it for projects. It’s something that has to be managed properly from the outset, before a new project is implemented. It’s not the easiest thing to do, and there are many pitfalls that can complicate the process. The good news is that you’re not on your own! We can assist. Here are some tips on how to manage your IT budget so that you get the best value for your investment.
Let’s start with what IT budgeting involves. It’s the process whereby funds and resources are allocated for managing your business IT systems. It includes a roadmap that will guide your approach to procuring and implementing new IT solutions as you move forward. It will vary according to the setup you have already. Financial resources will be earmarked for recurring services, staffing and other costs. Usually, companies have an annual IT budget, but funding may be directed at individual projects instead.
Distinguishing between ongoing expenses and project expenses is a good place to start. You can think of ongoing expenses as operational costs. They include those expenses that are paid for monthly, such as salaries, subscriptions for hardware and software, and any services you use, such as tech consultancy. It’s important to audit these operating costs comprehensively, so that you have an accurate picture of what the expenses really are, and so you don’t continue paying for subscriptions or services that you aren’t using any more.
One way to think of project expenses is to see them as similar to capital expenditure. These are what you pay up-front when you’re implementing new IT solutions. It could be hardware, software or, in some cases, consultancy services to assist in the rollout.
It’s all expense, so why is it important to separate them out? Generally speaking, it’s easier to keep on top of operating expenses, because they’re predictable and easier to manage. You know what’s going out each month, and it’s relatively constant. In contrast, capital expenses often involve large sums, and they’re often unexpected and therefore have not been planned for in advance.
By working with a managed service provider like Quikteks, more of your outlay falls into the category of operating expenses. You know what you’re spending each month and so it’s easy to budget for. Get started now! Quikteks can assist you with an IT budget and IT solutions that will help your business to flourish. For more information, call us today at (973) 882-4644.