Your IT budget needs to cover more than computers and Microsoft 365. It should include the technology you already use, the support needed to keep it working, planned replacements, cybersecurity, backups, employee changes, projects, and unexpected costs.
Get that right and you’re less likely to be caught out by a large software renewal, a failed laptop, or an urgent IT problem you hadn’t budgeted for.
43% of UK businesses identified a cyber breach or attack
The UK Government’s Cyber Security Breaches Survey 2025/26 found that 43% of businesses identified a cyber security breach or attack in the previous 12 months. For small businesses, the figure was 46%.
Source: Department for Science, Innovation and Technology and Home Office, Cyber Security Breaches Survey 2025/26.
What’s in this guide?
#no-standard-budgetWhy there’s no standard IT budget
#inventoryStart with a technology inventory
#equipmentBudget for computers and equipment
#subscriptionsInclude software and cloud subscriptions
#backupsBudget for backups
#peoplePlan for starters and leavers
#supportInclude IT support
#cybersecurityBudget for cybersecurity
#projectsInclude planned IT projects
#contingencyKeep money aside for the unexpected
#checklistYour IT budget checklist
What should an IT budget include?
For most businesses, IT spending falls into a few main areas:
Computers & equipment
Laptops, monitors, phones, network equipment, accessories, warranties, and replacements.
Software & cloud
Microsoft 365, specialist software, cloud storage, websites, domains, and other subscriptions.
Security & backups
Security software, account protection, backups, monitoring, training, and specialist help.
People
Equipment, accounts, licences, setup, support, starters, and leavers.
Support & projects
Day-to-day IT help, maintenance, upgrades, improvements, and planned projects.
Unexpected costs
Urgent replacements, faults, incidents, additional storage, and unforeseen work.
There’s no standard IT budget for every small business
You’ll find plenty of online benchmarks suggesting that businesses should spend a certain percentage of revenue on technology. The problem is that your business doesn’t operate as a percentage.
A ten-person law firm, retailer, and manufacturer could have similar revenue but completely different technology requirements.
Your budget will depend on things such as:
How many people you employ
How many locations you operate
The computers and other devices you use
The software your team needs
How dependent you are on internet and cloud services
The type of information you handle
Your cybersecurity requirements
Any customer or regulatory requirements you need to meet
“Not a one-size-fits-all approach to managing cybersecurity risks.”
NIST Cybersecurity Framework 2.0: Small Business Quick-Start Guide
That’s a useful principle for the wider IT budget too. Work out what your business actually needs first. You can then use industry benchmarks as context, rather than allowing a percentage to determine your spending.
Start with a complete technology inventory
You can’t build an accurate budget if you don’t know what you already own and pay for.
Start by listing your:
Computers, phones, and tablets
Printers and scanners
Servers and network equipment
Software and cloud services
Websites and domain names
Backup services
Security products
Internet connections
Business phone services
For each one, record the cost, renewal date, supplier, billing frequency, account owner, and who uses it. It’s also worth recording how important it is to the business.
Quick tip
Don’t just check your IT invoices. Look at company cards, bank statements, department expenses, and app stores too. You may uncover software that was bought outside the normal IT process.
A proper inventory can help you spot unused accounts, duplicate services, old equipment, and licences that are still being paid for after somebody has left.
Budget for computers and other equipment
A new laptop isn’t just the price on the box.
You might also need a monitor, docking station, keyboard, headset, webcam, carrying case, warranty, and delivery.
Then there’s the work required to get it ready. That can include installing software, applying security settings, setting up accounts, moving data, and checking that everything works.
Plan replacements before equipment starts causing problems. Replacing a sensible number of computers each year is generally easier to budget for than discovering several need replacing together.
Don’t forget a spare
A laptop that’s already prepared for your business can help get someone working again if their main device fails or gets damaged.
Include software and cloud subscriptions
Small subscriptions soon add up.
List every service the business pays for, including productivity software, accounting, customer management systems, electronic signatures, password managers, security software, backup, cloud storage, website hosting, and domains.
Pay particular attention to:
Monthly versus annual billing
Renewal dates
Price changes
The number of licences you’re paying for
Minimum user commitments
Storage or usage charges
Additional licences needed for new starters
Several annual renewals landing in the same month can put pressure on cash flow, even if their monthly equivalent looks affordable.
Budget for backups, not just storage
Cloud storage and business backup aren’t something you should automatically treat as the same thing.
Your budget should consider what information needs to be recoverable, where copies are kept, and how you’ll check that important information can be restored.
“Most organisations in the UK rely on digital technology to function.”
National Cyber Security Centre
The National Cyber Security Centre recommends backing up the data your organisation needs to operate. Its guidance includes emails, websites, invoicing information, documents, contacts, and customer information.
It also recommends knowing how to restore backups and checking they contain your important information.
Plan for starters and leavers
A new member of staff can cost considerably more than their laptop.
They may also need accessories, Microsoft 365, specialist software, security tools, cloud services, a business phone number, accounts, and setup work.
There’s work when somebody leaves too. Access needs to be removed, equipment returned, information transferred, and software licences cancelled or reassigned.
Estimate how many people you expect to join or leave during the year and include those changes in your budget.
Decide how you’ll pay for IT support
Buying technology and keeping it working are two different costs.
Your IT budget needs to allow for the people who will maintain computers, accounts, applications, networks, backups, and security.
You might pay for help when you need it, have somebody in-house, work with an outside IT support company, or use a mixture of these approaches.
Whichever route you choose, plan for everyday support as well as unexpected problems.
Good IT support isn’t just about fixing what’s broken
It’s about keeping your organisation secure, productive, and running without unnecessary interruption.
At Bespoke IT Solutions, you’ll speak to a real person who’ll take the time to understand the problem. We can also help you plan ahead, so your technology and costs are built around what your organisation actually needs.
Budget for cybersecurity
Cybersecurity shouldn’t disappear inside a general IT budget.
Depending on your organisation, your costs could include security software, account protection, staff training, secure backups, monitoring, assessments, cyber insurance, and specialist support.
Small businesses aren’t immune
The Government’s Cyber Security Breaches Survey 2025/26 found that 46% of small businesses identified a cyber breach or attack in the previous 12 months.
The practical lesson: allow for protection before something goes wrong rather than hoping you’ll find the money afterwards.
Bloomberg Intelligence has also described cybersecurity spending as likely to remain “non-discretionary”, even while organisations look to reduce other IT spending.
Include planned IT projects
Keep improvements separate from your everyday IT running costs.
A project might include changing a business application, replacing a server, improving Wi-Fi coverage, changing phone systems, opening a new location, moving services to the cloud, or improving cybersecurity.
For each project, think about the equipment, software, outside help, training, and continuing costs involved.
Keep money aside for the unexpected
No IT budget can predict everything.
A computer might fail. Equipment could be damaged. Storage requirements might increase. A supplier might change its pricing. A security incident could require specialist help.
Having some money set aside means an unexpected problem is less likely to derail the rest of your technology plans.
Your IT budget checklist
Before you sign off this year’s budget, check that you’ve allowed for:
☐ Replacement computers and devices
☐ Monitors, docks, headsets, and accessories
☐ Software subscriptions and renewals
☐ Cloud services and storage
☐ Cybersecurity
☐ Backup and recovery
☐ Internet and phone services
☐ Websites and domains
☐ Network equipment
☐ New starters
☐ Staff leaving the business
☐ IT support
☐ Staff training
☐ Planned IT projects
☐ Equipment replacement
☐ Unexpected problems and emergency costs
A good IT budget gives you fewer surprises
You don’t need to predict every technical problem that might happen over the next 12 months.
You do need a clear picture of what you’re already paying for, what needs replacing, what you want to improve, and where unexpected costs could appear.
That gives you better control over your costs and helps your organisation stay secure, productive, and prepared.
Not sure what should be in your IT budget?
We’ll help you understand what you’re paying for now, what you actually need, and what you should plan for next.
You’ll speak to a real person who’ll take the time to understand your organisation, your priorities, and your budget.
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