IT Budgeting for 20 to 100 Employee Companies
The Under Spend and Over Spend Trap
Many SMBs fall into one of two traps. They under-spend on IT until something breaks, or they over-spend on tools that do not align with business growth.
For Québec companies with 20 to 100 employees, IT budgeting is not about cutting costs. It is about aligning spend with operational risk, compliance needs, and expansion plans.
Core IT Budget Categories
A practical IT budget should be structured around five core categories:
- Devices: laptops, workstations, mobile devices, lifecycle replacement
- SaaS and Licensing: Microsoft 365, cloud platforms, line-of-business apps
- Security: endpoint protection, backup, MFA, monitoring
- Support: helpdesk, monitoring, maintenance
- Projects: upgrades, migrations, infrastructure improvements
Most structured environments align these categories under managed IT services with integrated cybersecurity controls.
Benchmarks You Can Use
While every business is different, common benchmarks for SMBs include:
- IT spend per user annually: 1,500 to 3,500 CAD
- Security allocation: 15 to 25 percent of total IT budget
- Device refresh cycle: every 3 to 4 years
- Backup and disaster recovery: mission-critical systems covered at all times
Per-user modeling simplifies forecasting and keeps spending aligned with headcount growth.
Run Grow Transform Framework
To prevent reactive budgeting, divide IT spend into three buckets:
- Run: day-to-day operations and support
- Grow: tools that enable expansion and productivity
- Transform: strategic improvements and modernization
This structure ensures IT spending supports both stability and innovation.
Budget Template Walk Through
Your annual budget sheet should include the following lines:
| Category | Annual Cost | Per User Cost |
|---|---|---|
| Managed Support | ||
| Security Tools | ||
| SaaS Licensing | ||
| Hardware Replacement | ||
| Projects |
This simple structure makes it easier to evaluate cost per employee and forecast growth impact.
Frequently Asked Questions
What percentage of revenue should IT represent?
For SMBs, IT typically ranges from 3 to 6 percent of revenue, depending on industry.
Should security be a separate line item?
Yes. Security visibility prevents underfunding risk controls.
How often should budgets be reviewed?
At minimum annually, with quarterly checkpoints.
Next Step Download the Editable Budget Template
AET Solutions provides an editable Google Sheet and Excel IT budget template tailored for Québec SMBs.
👉 Download the IT budget template and align your spending with risk and growth goals.
