Let’s be honest—when most people hear “IT budget,” their eyes glaze over. But if you’re running a nonprofit or small business, a smart IT budget isn’t just a spreadsheet—it’s your first defense against chaos, overspending, and costly surprises.
So, what is an IT budget exactly?
What’s an IT Budget?
An IT budget is a plan that outlines how much you’ll spend on technology—hardware, software, services, cybersecurity, and support—over a set period (usually a year). Think of it as your roadmap for staying efficient, protected, and prepared, without breaking the bank.
But it’s not just about keeping costs down. A good IT budget makes sure your team has the tools they need, your data stays safe, and your tech investments actually support your goals.
Why Bother with One?
Because winging it leads to two problems:
You overspend on things you don’t need.
You underspend on the things you really do (like security or backups).
More importantly, without a plan, you’re constantly reacting to problems instead of preventing them.
A clear budget gives you control. It helps you plan for upgrades, avoid downtime, and justify your tech expenses to your board or stakeholders.
What Should Be in It?
Here’s what most smart IT budgets include:
Hardware costs (laptops, printers, servers)
Software licenses & subscriptions (think Microsoft 365, Zoom, QuickBooks)
Cybersecurity tools (antivirus, firewalls, SIEM)
Backup & recovery systems
IT support or managed services
Training for staff
Contingency fund (for emergencies or unexpected upgrades)
How to Build One (Without Losing Your Mind)
Review your current spending.
What are you already paying for? Are you using it all?
Get input from your team.
What tech frustrations are slowing them down? What tools do they actually need?
Plan for growth and surprises.
Tech ages fast. Build in room for upgrades and emergencies.
Consider outsourcing.
Managed IT services (like ours at ETTE) can help you get predictable, scalable support without hiring in-house.