Let’s face it, friends. Budgeting can be a real pain!
I’ve seen IT managers spend hours upon hours developing what they think is a concise budget and proudly deliver it to their manager thinking it is “accurate” and “what their manager wants” only to have it summarily rejected and sent back for a re-work. In other cases, I’ve known IT managers who spent countless hours developing an approved budget only to find themselves asking for more money four or five months into the year because their actual expenses are blowing out of their budget.
Preparing your annual IT budget does not have to be an ordeal. It can actually be simple and a rather quick process when you are prepared, know what to do, and you have tools to help.
Contrary to conventional wisdom, being accurate is not always your top priority when budgeting. Certainly, you want to have insight into the budget categories and have your estimates fall into the right “ballpark”, but you also need to be appropriately conservative and build the appropriate buffers into the numbers. The reason is simple:
Not only do surprises happen, but those surprises are almost always costly surprises — seldom are they good surprises!
To help you organize your thought process around budgeting I have assembled the spreadsheets I have used in the past to prepare dozens of IT budgets for various businesses. You can download all of my worksheets for free right here:
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While these worksheets will be quite helpful in helping you organize and plan your budget, I highly recommend you also take a quick hour or 2 and read through my concise eBook: IT Budgeting: Operational and Capital Budgeting Made Easy. This book will reveal my practical secrets for creating a successful IT budget. Using my methods, I have never missed a plan and now you can benefit from my insights. Click here to download my book and add a little sanity to budget season!