Introduction

As we have reached the end of the walkthrough on the service strategy process, we must pay close attention to the finances and expenditure expended throughout the process. This begins from building the service catalog to releasing the IT services in the right market segment. Finances cannot be unlimited, and thus, financial management plays an equal and essential role in the life cycle. Financial management is handled and supervised by the financial manager of the company. Their primary role is to analyze, audit, and monitor financial management throughout IT service development.

What is ITIL Financial Management?

ITIL is an infrastructure that provides a set of best practices for IT services. It gives accurate guidance and information on which mix of services would fulfill their requirements. It is also the top grade in quality. Financial management exists at the very end of service strategy, which begins the cycle. Financial management mainly refers to the administration, auditing, and analysis of the spending and expenditure regarding the production and marketing of IT services among consumers.

Pivots of ITIL Financial Management

• Three centers- value, cost, and accounting: The cost center monitors the cost of developing a product and making a strategy. The accounting center balances the spending from the funds available per the value center. The value center acts as a highlight if certain processes are valuable enough to spend on.
• Chargeback- way of adding extra accountability and clarity: Chargeback is a simple process used by companies and is highly mandatory for financial management. It reasons (justifies) certain spending that allows the financial manager to keep an eagle’s vision to ensure that the IT services are delivered at a low cost and in an efficient manner.

Advantages of ITIL Financial Management

• Control unnecessary spending
• Aids in accounting spending and earning
• Increases efficiency and completes service strategy
• Allows the organization to realize the value of certain works and processes spent on