Creating an IT budget requires estimating costs for items like repairs and maintenance, while fixed costs like phone and internet services are easier to budget. Include salaries, overtime, and a cushion for unexpected expenses.
Creating an IT budget can take more time and thought than other items in your fiscal plan for the coming year. While some costs are fixed, many will have to be estimated. For example, expenses like Internet access are easy to budget because you’ll likely have a locked-in flat rate. Repair and maintenance costs often need to be estimated because you never know what equipment will break down or need an upgrade. Plan to spend more time on your IT budget as this can help you avoid any nasty surprises in the coming quarters.
The easiest items on your IT budget are fixed costs. These are the items you know and can give you an almost exact value. Fixed cost items usually include phone, Internet and fax services. If you have a website, you can find out your domain hosting fees for the next year. You’ll want to find the most expensive items in your IT budget. Try to determine if you will need new computers, network servers, or other technology upgrades. Be sure to include any technology updates you expect, as well as software updates. If you need to hire a specialist to install any of the new updates, please include adequate funds for the job.
Maintenance and repair is another important facet of IT budgets. While you can’t predict when a piece of technology will break, rest assured it will happen at some point in its lifecycle. Be sure to err on the side of caution when it comes to maintenance and repair costs in your IT budget. Include money that will be set aside to pay for parts and money to pay a technician’s salary if needed. For each item you include in your budget, first look at costs from the previous fiscal year to help you make better estimates.
Your IT budget should also include salaries for all employees who work in information technology for you. If any employee expects pay increases, budget for them. If you have an IT department, you may need to account for overtime as it may not be convenient to perform upgrades or other maintenance tasks during normal business hours. Don’t forget to add a cushion for new government mandates such as additional fees and costs for health insurance.
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