2022 Budget Items

Are you ready for the new year?

You have a budget laid out. The plan for your business’s future. You’ve included everything. Almost.

Did you include your IT budget?

Sometimes it’s the last thing you think of, do you need more, better, faster computers?
Will your old computers work with your new cloud implementation? Are there things you don’t know about new security features or compliance requirements?

Your IT vendor should be going over these items in your business reviews. Here are the top 5 items you should be budgeting for;

1. Hardware – This one is pretty obvious, but you should be getting a Life Cycle report from your IT vendor showing you which pieces of hardware are nearing the end of life, end of warranty, or recommended replacement intervals. We recommend our clients start looking at replacing at 4 years for computers and 6 years for Servers, we also look at Routers, Switches, Wireless Access Points and Printers.
2. Software – Unlike hardware, the software doesn’t really falter and die at a certain age, but they do reach an end of life, or may no longer be updated and supported (Think Windows 7). Or you may be considering changing out a CRM or EMR software, either of which is a major undertaking and will certainly involve a cost to transition.
3. Contracts- Many contracts update on a yearly or other period of time, due to cost increases, inflation or simply annual increases. It is a good idea to check with any party that you have a contract with to see if they are planning any increases in the next year.
4. Projects- These can stem from items you are considering like the aforementioned CRM or EMR replacement or could be due to the requirements of vendors. New software updates may require upgrading computers or other items. One we will most likely see a lot of in the new year is increased cyber security software, If you have Cyber Liability Insurance, most of the providers are requiring advanced cyber security software and procedures that will need to be implemented in order for them to even continue your coverage. (If this is a concern for you, please reach out to us we have a full Cyber Assessment specifically for this instance www.acaciait.com/cyberinsurance )
5. Emergency Fund- Does your company have one? It may be something to consider, having the money and not needing it is a lot better than figuring out how to borrow it when an emergency occurs. The amount of money for this fund can vary greatly depending on things like the size of a company, what the company does, service companies probably will not need as much as a manufacturing company. Take some time and consider what would happen if, then set aside some money to cover those scenarios.

This may not be a full list for you depending on your type of company and budgeting needs, but it is a good start to getting you on the way to standardizing costs instead of being surprised by them. Work with your IT representative and put together a budget so you know what to expect. And as always if you would like to talk to someone about this or any IT issues, please contact me directly – ask for Greg at (520) 751-0888 or email me at greg@acaciait.com