IT Budget Planning: A Guide for Businesses

• IT support and management. A managed IT agreement, internal IT staff or both. With managed IT services, support, monitoring, patching and endpoint protection are covered by one monthly agreement.
• Software subscriptions. Microsoft 365 or Google Workspace, line-of-business applications, accounting software and other cloud services, most of them priced per user.
• Security tools. Endpoint protection, backups, multi-factor authentication and any tools your insurer or customers require. See our cyber insurance requirements checklist.
• Internet and phones. Internet service at each location, a backup connection where the business depends on it, and phone service.
• Warranties and renewals. Hardware warranties, firewall security subscriptions, domain names and certificates that renew every year.

• Equipment replacements. Computers, servers, firewalls and Wi-Fi equipment reach the end of vendor support on a known schedule. See when to replace business IT equipment.
• Projects. Office moves, new locations, software changes, moves to the cloud and security improvements.
• New hires. A computer, accounts and licenses for each new employee. See our onboarding and offboarding checklist.
• Compliance and reviews. Work to meet customer, insurer or regulatory requirements, such as documentation or new security settings. See compliance-aligned IT services.
• A contingency. A reserve for the unexpected, such as an early equipment failure or an urgent security fix.

1. List what you have. Every computer, server, firewall and Wi-Fi device, with its age, warranty end date and the date the vendor stops security updates.
2. List what you pay for. Support, software subscriptions, internet, phones and renewals, with the renewal date and the number of users or devices for each.
3. Plan replacements by year. Spread equipment replacements over several years instead of replacing everything at once, starting with the systems the business depends on most.
4. Add projects. Include the projects leadership expects in the next year or two, from new hires to a new office.
5. Review it regularly. Compare actual spending with the plan each quarter and update the budget once a year.

Unplanned costs usually come from repairs, emergency work and downtime. Monitoring and maintenance catch many problems early, and a monthly agreement replaces surprise repair bills. For a comparison, see break-fix vs. managed IT services.

Downtime is a cost too, even when it does not appear on an invoice. Our guide to the cost of IT downtime shows how to estimate it, which helps you decide where spending on backups, a backup internet connection or faster recovery pays off.

TechStarters has provided managed IT services to businesses since 2010. Through our IT consulting and virtual CIO services, we build technology roadmaps and budgets with you, track warranties, renewals and licenses and review them with leadership.

Managed IT is priced per device, with an annual or month-to-month agreement, so your monthly cost follows the equipment you manage. Every engagement starts with a free IT assessment and a written proposal; see how managed IT pricing works. We support businesses nationwide from offices in New Jersey, Pennsylvania, Delaware and New York.