by Mark Maine

Created on: January 20, 2009   Last Updated: January 27, 2009

When you are constructing an IT department budget for 2009, the first approach should be to assess the estimated cost expenditures for the coming year. This would break down into two main categories, Capital and Operating expenses. When preparing to present your material you should not think in terms of needing to justify your departments budget, as "justify" has a negative connotation to it. To justify gives the implication that under normal circumstances it can be done without, therefore it requires justification in order to be approved. It is better to use the explanatory approach. To "explain" the IT budget gives the implication that it is necessary and requires no justification as it is required in order to complete the necessary task. When assessing the budget for the coming year you need to break down each category into its individual expenditure and accurately estimate any possible fluctuating costs. Using research from data collected in previous years you can build a model for how the IT department has improved. This will also point out weak areas and allow you to recommend and implement changes that will increase productivity and reduce costs. By noticing previous department trends with the data collected and future business projections you can create an accurate budget for 2009.

Each company is different and every individual IT department has its own expenses. What works for a large corporation of multiple locations supporting a WAN as well as a LAN is not going to be the best solution for a small business supporting their local machines all in one office. So with the interest of pointing out some simple tips and strategies that will benefit all whether managing a large or small IT department, we will take a look at a few good points to exemplify that are often overlooked. The approach is not to justify, but to clarify. When drawing up the budget many factors are required and the more detailed the information is, the more accurate the budget will be. The more accurate your information is, the better the chances are that your budget will be approved. While working through and gathering the information to create the budget, take the time to notice if there are areas of improvement. Everything can be improved in some way or another. By being ahead of the game and streamlining the process you may open up avenues for other opportunities that were possibly outside of the current budget.

Using the explanatory approach you need to make an overview of the

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