What is Financial Management For IT Services or Assets?
Financial Management for IT Services (ITFM) determines the costs of assets & services and provides financial accounting support to make sure expenditures fall within approved budgets and that funds are well spent.
Goal of ITFM:
- Service valuation or defining the value of the services offered to clients by taking into account all costs and quality and risk factors.
- To ensure the highest level of service delivery at the lowest cost.
Financial Management Process:
- Budgeting – Budgeting enables an organisation to plan future IT expenditures.
- IT Accounting – IT accounting mainly deals with the amount of money spent in providing IT services.
- Charging – Charging provides the ability to assign justified & fair costs of an IT Service to the users of that service.
The process is circular. Budgeting supports Accounting , Accounting supports Charging, Charging supports Budgeting and so on in an endless loop throughout the lifecycle.
There are other processes too in the ITIL model that provide information to the financial management for IT process.
- Service Level Management
- Configuration Management
- Capacity Management
- Change Management
Finally everything leads to highest level of service delivery at the lowest cost.