Here are our Top 5 Tips to Creating a Better Budget
- Plan Beyond Year 1. Even though your budget may only be for 2014, your IT initiatives often span multiple years. It is important to plan for the carry-over from 1 year to the next. If the corporate planning documents only account for 1 year, create your own model for 3 years – think ahead.
- Plan for Operational & Capital Expenditures. Make sure you are aligned with your CFO on which items are ongoing costs and which are investments that will have value beyond 2014. Forecast how capital depreciation may affect future year operational expenses
- Consider all possible initiatives. Avoid reaching the middle of 2014 and realizing you don’t have budget for a key initiative. Make sure you have included a wide range of potential projects and IT services.
- Delegate budget management and hold your management team accountable. Make your whole team financially responsible, train them to build realistic budgets and make sensible trade-offs during the year. Be sure your financial management processes and governance are well documented and understood.
- Make your budget work for your strategy. Make sure there is budget identified to support strategic shifts in the IT environment. Plan year over year initiatives to meet future requirements; don’t let routine work eat up your entire budget.
Need an outside perspective on your IT strategy? Intellinet experts can help assess or create IT strategy roadmaps to ensure you are meeting your business goals and creating realistic budgets. Contact Intellinet today to learn more or to schedule a Strategy Roadmap Assessment.