Crafting Your Yearly IT Budget

October 26, 2020 by Tim

---

Note: contact your accountant, tax advisor, or other financial professional for tax and budgeting advice. By using our site you agree to our disclaimer.

There’s no doubt it’s been an unusual year for business finances. Besides all the revenue lost to COVID-19, assistance programs like the Paycheck Protection Program (PPP) have created a host of interesting tax scenarios for businesses this year. Personally, I’ve seen the full range of circumstances among clients, from those who are looking to spend extra cash to reduce their tax burden, to those who are seeking to reign in expenses anywhere they can.

Whatever position you find yourself in, it’s more important than ever to budget carefully for the coming year. In many businesses, technology is one of the biggest expenses, so with the end of 2020 approaching, we’re offering the following tips on planning your yearly IT budget.

Looking to make IT purchases before 2020 ends, or right as 2021 begins? We’re here to help. Contact Green Mountain IT Solutions today for a free, fair assessment of your IT needs for the coming year. We can help you spend your IT budget wisely, cut costs if needed, and get the best bang for your buck across the board. Contact us today.

802-489-6948 | info@greenmtnit.com

Hardware Costs

The first thing most people think of when it comes to their IT budget is purchasing new equipment. Take a moment to brainstorm what aging hardware may need to be replaced soon, or what additional equipment may need to be added next year. These days, you may want to carefully consider work-from-home tools like laptops and docking stations.

Typically, most IT hardware can be used reliably for about 3-5 years before it begins to show its age and warranties begin to expire and the equipment begins to show its age. If you have computers, servers, or network equipment like switches and routers that are pushing that deadline, you may want to consider replacing them.

Not sure how old your equipment is? Hoping to get just one more year from your old gear? Contact a trusted IT company like Green Mountain IT Solutions for fair, honest advice on IT purchases.

End-of-Life Dates

Another factor that may influence if you need new hardware is the End-of-Life date for various systems and software. In the computing world, End-of-Life (also called End of Support) means that a device or piece of software will no longer receive technical support, bug fixes, or feature updates. Most importantly, this means that any security vulnerabilities discovered in the product will not be fixed. Using hardware or software past its End-of-Life date can therefore be a major security risk.

For example, Windows 7 (as well as its cousin, Server 2008) reached its End-of-Life date on January 14, 2020. If you are still using Windows 7, you are at risk of cyber-attacks and should budget to replace your computers ASAP.

Similarly, Windows 8.1 will reach End-of-Life on January 10, 2023 The Windows Server 2012 operating system will also reach End-of-Life in 2023. That may sound like a long way off, but it’s only about two years away, so it’s time to start thinking about replacing PCs and Servers using Windows 8.1 or Server 2012 operating systems, too.

For Mac users, Apple is planning to release the next version of the MacOS operating system, codenamed “Big Sur”, by the end of 2020. Since Apple tends to support only the latest and previous two releases of its operating systems, Macs running version 10.13 “High Sierra” or earlier should be prepared to upgrade or replace their devices.

It’s also a good idea to check in on the End-of-Life dates for any special software you use. QuickBooks, for example, usually only supports the previous three releases, so QuickBooks 2018 will reach its End-of-Life when QuickBooks 2021 releases next May. AutoCAD, another popular program with yearly releases, also supports only the three previous versions.

Try doing a Google search for your software’s end of life date, such as “Quickbooks 2018 end of life” or “AutoCAD 2016 end of support”. You can also contact Green Mountain IT Solutions for assistance if you have questions.

Software Purchases

Beyond software that’s expiring, the end of the year is also a good time to decide if you may want to switch to different software or add new applications to your workflow. This year, pay special attention to remote access programs like LogMeIn or RemotePC, as well as communications platforms like GoToMeeting, Zoom, and Microsoft Teams.

Looking for recommendations on software to make your team more effective? Need a few pointers on remote-work tools? From remote document signing, to secure file sharing, to webinars, networked phone systems and more, Green Mountain IT Solutions has you covered. Contact us today to get started.

IT Maintenance

Your IT professional can also help you budget for the labor cost of any upcoming projects or upgrades that may be required in the coming year. It’s important to make sure your IT company provides predictable budgeting without surprise bills and hidden fees. Never agree to any IT project that’s billed on a time-and-materials basis. A reputable company like Green Mountain IT Solutions will provide a fixed quote for any projects and alert you well in advance if any changes are needed.

You should also consider entering into a managed service agreement with your IT provider. Under this type of contract, IT services like remote support and preventative maintenance are performed for a flat fee. Unlike the traditional break-fix model, managed services allows you to easily budget for IT labor and avoid surprise repair bills.

Predictability is Key

No matter what your IT needs look like for the year to come, take the time to meet with your technology professional and discuss your budget and needs. An honest, trustworthy IT company can help get you exactly the services you need. Here at Green Mountain IT Solutions, your needs always come first. Our goal is to save you valuable time and money with a predictable, pro-active approach to IT.

Ready to chat about the IT year to come? Contact us today to get started.