IT costs and their importance in business finance

We live in the age of technology. You will read this phrase many times on our blog, but know that we do not repeat it just because we are a technology company and yes, because it is a fact.

Companies that resist implementing field management software or any other technological tool that allows their teams to be more productive can lose money, market space and even miss the right time to develop.

The digital and technological transformation is a path of no return and for that to happen, technicians and professionals in the area need a good infrastructure.

Following this context, many managers will face a big dilemma: exorbitant IT expenses that compromise corporate finances.

If this dilemma is a constant discussion between board meetings, or if “IT costs” is the topic that generates constant headaches for getting out of control in your business, continue on this content, because it was made for you.

Good reading!

How the “IT cost” can impact as part of the company’s total expense

Technology has come to occupy a greater position within our lives and corporations in recent years, especially in 2020.

With social distancing, technology has evolved in a few months as expected for years and advances in computers, phones, cloud storage, data backup, software and other proposals are forcing managers to change their business spending plan.

Deciding how much to allocate to a company’s technology funds can be unique to each company and will require managers to do much more than numbers.

The need to invest in IT and technologies has left many experienced people confused, but know that this is a necessary investment and not a “lost cost”.

The benefits of technology in business

Every company needs to study how the funds will be distributed among the sectors of its business and the IT area can be one more fund that many did not think about having in the business, as it is an investment that does not see immediate returns.

But be aware that IT can be a backbone and prove to be much more useful and capable of generating many benefits in the long run.

Investing in IT can mean:

  • the possibility to increase your customer base
  • developing a better business relationship
  • offering a better service
  • creating reports capable of helping to find new trends and ways to offer your service
  • cost reduction, increased productivity, better efficiency, less waste, better time

Remember that customers each day expect more than one service and many seek quality first and then analyze price.

Technology will help you stand out in the market and be different from the competition, even if it is very large.

IT cost: what should be included in the IT budget

Companies need to invest in IT to stay active, especially in the face of the social isolation the world has been experiencing in recent months.

This means that IT expenses should be considered as a percentage of a business’s total spend.

With that in mind, just optimize the IT budget for it to be efficient and meet the needs of the company not only in the short term, but in the long term as well. All this without spending too much.

Check a list of items that should be taken into account in the topic “IT costs” monthly or annually:

Infrastructure update

Technology is advancing so fast that it is often difficult to keep up with its dynamism. This makes the service life of the equipment much shorter and this can become a problem in the budget if not thought out in advance.

Failing to update the infrastructure where the IT team works can bring some losses such as decreased productivity, lack of organization and even loss of efficiency.

There is no ideal time to change equipment, update the server and other items that are important for the business to continue to evolve, but you can count on a specialized team to keep everything in order for the company not to lose money, customers or stay outdated with the latest trends in the market.

Data security

Data security cannot be neglected as the damage can be irreversible, both in moral and financial terms.

Investing in data security is essential for every business that lives in the digital age and works with sensitive information.

There are companies and professionals specializing in digital security who offer their services monthly or annually.

This is an item that should never leave the list of IT costs.

Remote management

Remote management allows your team to have the opportunity to work from home a few days a week or full time.

With a well-designed infrastructure, professionals can act remotely and help the company to save in other fields such as energy, water and office supplies.

This feature is able to make the team much more productive, which means more profits and cash on hand.

IT checkup

You can make a percentage of the company’s total spend available to IT, but you don’t necessarily need to have a large IT staff working in your office.

Companies that provide IT services like EuNerd can send certified professionals to visit the office and assess the space’s infrastructure.

With this, you receive a report on the health of the company pointing out the improvements that can be made to boost the business as a whole.

Preventive maintenance

Preventive maintenance should be a constant in a business that makes use of technology.

Many companies don’t think about it when they create an IT budget and that could mean more spending in the future.

Preventive maintenance, as the name implies, seeks to anticipate problems and adjust them before they happen.

With this, companies can plan the exchange of equipment, infrastructure adjustments and much more.

 

Including “IT costs” in your company’s expense spreadsheet is an investment and a necessity, it does not mean losing money.

Now that you have an idea of ​​how technology expenses can work, talk to our Nerds to create a unique cost optimization plan and project for your business.