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With the new financial year ahead, now is a great time to think about the year ahead, and budgeting for IT costs and hardware replacement etc.

Having a solid plan and budget for your IT is crucial to the smooth running of your business.

In this article we cover:

  1. Some budgeting for IT advice from local Accountancy firm Sidekick. 
  2. How you can make a plan for budgeting for IT hardware.
  3. How an MSP (Managed Service Plan) can help with IT budgeting. 
  4. Preparing for the unexpected. 

Budgeting for IT advice from local Accountancy firm Sidekick:

Prioritizing budgeting for IT projects equips businesses to thrive in a technology-driven landscape.

Budgeting for IT projects is vital for businesses in the upcoming year to leverage technology effectively and gain a competitive edge. 

Here are some key reasons why:

  • Embracing Digital Transformation: Investing in IT projects enables businesses to adapt to changing market dynamics, streamline processes, and drive innovation.
  • Enhancing Operational Efficiency: Budgeting for IT projects optimizes workflows, improves collaboration, and boosts productivity, leading to cost reduction and improved customer satisfaction.
  • Strengthening Cybersecurity Measures: Allocating resources to IT projects strengthens cybersecurity, protecting sensitive data and mitigating risks associated with data breaches and regulatory non-compliance.
  • Driving Innovation and Competitive Advantage: IT project budgets foster innovation, allowing businesses to differentiate themselves, explore emerging technologies, and gain a competitive edge.
  • Adapting to Changing Consumer Expectations: IT investments help businesses meet evolving consumer demands, deliver personalized experiences, and enhance brand perception to drive customer loyalty and revenue growth.

How you can make a plan for budgeting for IT hardware:

Most businesses will have a budget for IT hardware and other goods and services that they need to operate. 

Our advice is that if you have more than a handful of computers, you will benefit from forecasting and budgeting for IT expenditure. 

Once your business is established, there is a very good chance that you will need to replace your IT equipment every few years. Such a good chance, in fact, that you can plan on it! 

Drawing up an IT replacement schedule helps you plan well in advance, and helps ensure you have the funds when you need them.

This can be done in conjunction with our team at IT Centre. If you don’t have a list already, we can assist you to do an audit of the IT equipment that you have, the date it was installed, and therefore when it is likely to need replacing based on its expected life. 

This asset management plan needs to be revised every year for budgeting purposes.

We strongly suggest that you do this years in advance of when you actually require upgrades. It’s not hard to do. 

This list can help you have a clear and actionable plan on existing equipment, when warranties expire, and the requirements for a staggered plan for new hardware. 

How an MSP (Managed Service Plan) can help with IT budgeting:

Something that makes this type of IT cash-flow or forecasting easier, is if you are on an  MSP (managed service plan)

Being on a Managed Service agreement removes many of the fluctuations of IT budgeting as generally you pay a fixed monthly fee for day to day IT support. 

You can read more here about the benefits of being on a Managed Service plan. 

Preparing for the unexpected:

If there is one thing the last three years has taught us all, it is to prepare for the unexpected. 

In terms of I.T,  this means having a plan in place for things like internet outages (read more here), cybersecurity (read more here), as well as a cyber security policy (read more here). 

Whilst no plan is foolproof, having these business plans in place can save you precious time and money.

In Summary:

If this all feels too overwhelming, and you don’t know where to start, please feel free to reach out to our friendly team at IT Centre, and we can offer some advice on the most important priorities for you and your business in terms of IT planning and budgeting.