Information technology (IT) is constantly evolving. As the owner of a small to midsize business, you’ve probably been told this so often that you’re tired of hearing it. Yet technology’s ceaseless march into the future continues and, apparently, many companies aren’t so sure they can keep up.

In October of last year, IT infrastructure services provider Kyndryl released its 2024 Kyndryl Readiness Report. It disclosed the results of a survey of 3,200 senior decision-makers across 25 industries in 18 global markets, including the United States. The survey found that, though 90% of respondents describe their IT infrastructures as “best in class,” only 39% believe their infrastructures are ready to manage future risks.

A tricky necessity

The concept and challenge of keeping business technology current is called “IT modernization.” And to be clear, the term doesn’t refer only to IT infrastructure — which includes your hardware, software, internal networks, cloud services and cybersecurity measures. It also refers to your company’s IT policies and procedures.

To stay competitive in most industries today, some more than others, you’ve got to modernize everything continuously. But here’s the tricky part: You have to approach IT modernization carefully and cost-consciously. Otherwise, you could wind up throwing money at the problem, severely straining your cash flow and even putting the business at financial risk.

4 tips for getting it right

So, how can you develop an effective IT modernization strategy? Here are four tips to consider:

1. Begin with an IT audit. Many small to midsize businesses develop their technology improvisationally. As a result, they may not be fully aware of everything they have or are doing. If you really want to succeed at IT modernization, a logical first step is to conduct a formal, systematic review of your infrastructure, policies, procedures and usage. Only when you know what you’ve got can you determine what needs to be upgraded, replaced or eliminated.

2. Align modernization with strategic objectives. It’s all too easy to let IT modernization become a game of “keeping up with the Joneses.” You might learn of a competitor investing in a certain type of hardware or software and assume you’d better follow suit. However, your modernization moves must always follow in lockstep with your strategic goals. For each one, ensure you can clearly rationalize and project how it will bring about a desired business outcome. Never lose sight of return on investment.

3. Take a phased, pragmatic approach. Another mistake many small to midsize business owners make is feeling like they’ve fallen so far behind technologically that they must undertake a “big bang” and effectively recreate their IT infrastructures. This is a huge risk, not to mention a major expense. Generally, it’s better to modernize in carefully planned phases that will have the broadest positive impact. Prioritize mission-critical areas, such as core business applications and cybersecurity, and go from there.

4. Train and upskill your people. As funny as this may sound, IT modernization isn’t just about technology; it’s also about your users. If your employees don’t have the right skills, attitude and security-minded approach to technology, the most up-to-date systems in the world won’t do you much good. So, as you mindfully develop every aspect of your IT infrastructure, policies and procedures, pay close attention to how modernization initiatives will affect your people. Be prepared to invest in the training and upskilling needed to roll with the changes.

Tech support

The evolution of business technology will be ongoing — especially now that artificial intelligence has taken hold in nearly every sector and industry. The good news is that you don’t have to undertake IT modernization alone. Be sure to leverage external relationships with trusted consultants and software vendors. And don’t forget our firm — we can provide tailored cost analysis and financial insights to support your company’s technological evolution.

© 2025

Most small to midsize businesses today are constantly under pressure to upgrade their information technology (IT). Whether it’s new software, a better way to use the cloud or a means to strengthen cybersecurity, there’s always something to spend more money on.

If your company keeps blowing its IT budget, rest assured — you’re not alone. The good news is that you and your leadership team may be able to control these costs better through various proactive measures.

Set a philosophy and exercise governance

Assuming your company hasn’t already, establish a coherent IT philosophy. Depending on its industry and mission, your business may need to spend relatively aggressively on technology to keep up with competitors. Or maybe it doesn’t. You could decide to follow a more cautious spending approach until these costs are under control.

Once you’ve set your philosophy, develop clear IT governance policies and procedures for purchases, upgrades and usage. These should, for example, mandate and establish approval workflows and budgetary oversight. You want to ensure that every dollar spent aligns with current strategic objectives and will likely result in a positive return on investment (ROI).

Beware of shiny new toys! Many businesses exceed their IT budgets when one or two decision-makers can’t control their enthusiasm for the latest and greatest solutions. Grant final approval for major purchases, or even a series of minor ones, only after carefully analyzing the technology you have in place and identifying legitimate gaps or shortcomings.

Also, remember that overspending on technology is often driven by undertrained employees. Teach and remind your users to adhere to your IT policies and follow procedures. Doing so can help prevent costly operational mistakes and cybersecurity breaches.

Conduct regular audits

You can’t control costs in any business area unless you know precisely what they are. To get the information you need, regularly conduct IT audits. These are formal, systematic reviews of your IT infrastructure, policies, procedures and usage. IT audits often reveal budget drainers such as:

• Redundant subscriptions for software or other tech services,
• Underused or forgotten software licenses, and
• Outdated or abandoned hardware.

You may discover, for instance, that you’re paying for several different software products with overlapping functionalities. Choosing one and discarding the others could generate substantial savings.

As you search for overspending, also look for examples of IT expenditures delivering a good ROI. You want to be able to refine and repeat whatever decision-making process led you to those wins.

Keep an eye on the cloud

One specific type of IT expense that plagues many businesses relates to cloud services. Like many companies, yours probably uses a “pay as you go” subscription model that includes discounts or rate reductions for lower usage. However, if you don’t monitor your actual cloud usage and claim those discounts or cheaper rates, you can wind up overpaying for months or even years without realizing it.

To avoid this sad fate, ensure that at least one person within your business is well-acquainted with your cloud services contract. Assign this individual (usually a technology executive) the responsibility of making sure the company claims all discounts or rate adjustments it’s entitled to.

One best practice to strongly consider is setting up weekly cloud cost reports that go to the leadership team. Also, be prepared to occasionally renegotiate your cloud services contract so it’s as straightforward as possible and optimally suited to your business’s needs.

Don’t give up

To be clear, controlling IT costs should never mean cutting corners or scrimping on mission-critical technology expenses — particularly those related to cybersecurity. That said, you also should never give up on managing your IT budget. We can help you develop a tailored cost-control strategy that keeps your technology current and supports your business objectives.

© 2025

A strong brand can help boost revenue, while a weaker one may reduce sales opportunities and stifle growth.

Like many business owners, you’ve probably spent considerable time and energy crafting your company’s brand. Doing so has likely involved coming up with a memorable business name and logo, communicating with customers in a distinctive manner, and, above all, building a strong reputation in your market.

So, how’s all that going? Although your bottom line can certainly tell you a thing or two about the current success of your business, brand strength can be a little trickier to put a finger on. That’s why many companies conduct brand audits — essentially, formal reviews of a brand’s efficacy and market standing.

Data to gather

There are many ways to conduct a brand audit. The optimal steps for your business will depend on factors such as your industry, your company size and the popularity of your brand.

But most audits have certain things in common. For starters, they generally rely on information you already have on hand or could easily generate. Examples include:

Sales data. One objective of a brand audit is to identify sales-related key performance indicators and trends that may relate to branding. Essentially, if sales have slumped, is your brand partly to blame? And if so, why?

Website analytics. Brand audits usually investigate whether site traffic is trending upward or downward. They also typically determine how much time visitors spend on your site and on which pages. A strong brand will draw consistent visitors who tend to stick around. A weaker one is often indicated by a large number of accidental visitors who leave quickly.

Social media interactions. Although social media has its challenges and downsides, one enormous benefit is that each of your accounts should provide a wealth of interaction data. Brand audits can analyze this information over time to assess brand strength — and determine whether it’s rising or falling.

Customers and employees

Most brand audits also involve gathering the thoughts and opinions of two major constituencies: customers and employees.

Customers, of course, represent the richest source of insight into brand strength. Brand audits can involve surveys that posit various questions to customers and prospects about your brand. But such a survey needs to be carefully designed. You’ve got to keep it short, clear and easy to complete. Most are now conducted online.

Employees can also tell you things about your brand that you might not know or haven’t thought about. Your sales staff, for instance, could be getting feedback — positive or negative — from customers and prospects. So, an employee survey focused on brand-related issues can be a useful part of an audit.

More than marketing

Generally, brand audits are conducted for marketing purposes. They can help your marketing department determine how to enhance your brand — or potentially even whether you need to undertake a full-blown rebrand. But regular brand audits can also benefit strategic planning. You may even discover that someone has been using your brand fraudulently!

Precisely who should conduct a brand audit typically depends on business size. Larger companies with sizable internal marketing teams may be able to do it themselves. But many small to midsize businesses turn to marketing consultants or agencies to do the job. Our firm can help you assess the costs of a brand audit, as well as gather and analyze some of the financial data involved.

© 2024

• Planning the audit
• Performing the audit
• Internal control over compliance
• Compliance testing
• Audit sampling
• Single audits - special considerations
• Reporting on the compliance audit

FASB Issues Lease Standard

•  Finance Leases. Interest on the lease liability is required to be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income. Repayments of the principal portion of the lease liability are to be classified as financing activities in the statement of cash flows, while payments of interest on the liability and variable lease payments are to be classified as operating activities.

•  Operating Leases. A single lease cost is to be recognized in the statement of comprehensive income based on the allocation of the cost of the lease over the lease term, generally on the straight-line basis. All cash payments are to be classified within operating activities on the statement of cash flows.

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