Learn how IT services firms can improve spend control and budgeting. Discover challenges, key expense areas, and how Summit supports smarter finance for growing tech businesses.
Running an IT services firm today means juggling fast-changing project demands, recurring costs, and complex budgets - all while scaling your business. But if your finance workflows haven’t evolved along with your services, you’re likely losing time, visibility, and money.
Whether you run a managed service provider, software consultancy, or enterprise IT team, the right financial systems can help you regain control. In this article, we’ll break down the IT services business model, expense challenges, and how software like Summit can simplify finance management for growing tech teams in Singapore.
IT Services Business Model: Recurring or Project-Based?
Most IT services firms operate under one of two core models or a combination of both: project-based engagements or retainer-based contracts. Each comes with its own financial structure, cash flow patterns, and expense management challenges.
Project-Based IT Firms
These firms deliver one-off or short-term solutions such as custom software development, system migrations, network infrastructure rollouts, or cybersecurity upgrades. Projects typically have a fixed scope, timeline, and budget, but that’s where predictability ends.
In reality, client requirements evolve mid-project, new tools may be introduced, and hardware or third-party services may be needed to meet deadlines. This creates variable costs that aren’t always easy to forecast. For finance teams, it means tracking project-level expenses in real time and being ready to adapt budgets on the fly. Cost overruns can quickly eat into margins if spend isn’t closely monitored.
Retainer-Based IT Firms
On the other hand, firms operating under monthly or annual retainers provide continuous services like IT support, cloud infrastructure monitoring, managed security, or help desk operations. These models offer more consistent revenue, which simplifies cash flow planning. But they come with their own financial management needs.
Recurring expenses - such as software licences, cloud subscriptions, domain renewals, and service credits - must be tracked, reconciled, and allocated to the right clients. As vendors update pricing or service tiers, finance teams need systems in place to ensure these changes are reflected in budgets and client billing. Overlapping billing cycles and contract renewals also make it harder to align costs with actual usage.
Shared Financial Complexities Across Models
Regardless of whether your firm is delivering long-term support or short-term implementation, both models come with common cost components:
- Hardware and software procurement
- Cloud infrastructure (AWS, Azure, GCP)
- Vendor payments and subcontractors
- Training, certifications, and compliance tools
- Licensing and device management platforms
Add to that rising vendor prices, international transactions, and complex tax treatment, and it becomes clear why accurate, agile budgeting is non-negotiable.
That’s why more finance leaders in IT are turning to tools that offer real-time visibility, automated approval workflows, and category-level expense analysis. You can learn more about how to manage these budgets effectively in our article on budget management for finance teams.
Managing Expenses in IT Firms
IT companies manage a wide range of cost categories, from recurring SaaS subscriptions to one-off server purchases. Common expense types include:
- Software licences and renewals (e.g. Microsoft 365, GitHub, AWS)
- Cloud service subscriptions billed by usage or flat monthly rates
- Hardware and infrastructure purchases like laptops, networking gear, or external drives
- Specialist staffing and contractor fees, often linked to specific projects
- Training, certifications, and security tools
When these costs aren’t tracked properly, it leads to overspending or wasted subscriptions. AI can help by grouping them into meaningful expense categories, giving finance teams clarity across departments and clients.
Finance Team Struggles in the IT Sector
Many IT finance teams still use disconnected systems and manual approval workflows. Invoices are reviewed via email, receipts get lost in Slack threads, and no one has real-time spend visibility.
Poor expense categorisation is another major pain point. Subscriptions may be lumped into “software” or “miscellaneous,” making it hard to analyse project-level costs or client profitability. And when audit season rolls around? Finance teams scramble to collect approvals, track vendor payments, and reconcile accounts - wasting time that could be spent on strategy. To avoid this, more tech companies are turning to accounts payable automation for faster approvals and cleaner records.
Software Solutions for Better Control
Finance tools designed for IT service providers offer key features that reduce manual work and support control across departments. Look for systems that provide:
- Role-based access so project managers, finance, and leadership teams only see what’s relevant to them
- Spend policies that flag when vendor payments or expenses exceed thresholds
- Real-time dashboards showing expenses by department, client, or service category
- Automated approval flows that keep vendor payments moving without delays
- Audit trails and documentation storage for fast, stress-free audit prep
With the right tools in place, IT finance teams can reduce risk, plan ahead, and support sustainable growth.
How Summit Supports IT Services Finance
Summit was built for businesses that are scaling fast and need visibility into every dollar. For IT service firms, we offer automated invoice approval workflows, AI-powered expense categorisation, and real-time budget tracking: all in one platform.
Whether you’re managing recurring software costs or onboarding new vendors for a big project, Summit keeps your spend organised, your approvals on track, and your reporting audit-ready.
Summit integrates seamlessly with your existing accounting stack, making it easy to set up and even easier to scale. Want to simplify finance for your IT team? Talk to us today and see how Summit brings clarity, control, and confidence to fast-growing tech businesses.
