IT Audit Checklist for the New Year: What to Review in Q1

Q1 is a busy time of year for most small and mid-sized businesses as they start to implement their plans for the new year. Budgets are approved. Business goals are set. Hiring, growth and operational initiatives may already be in motion.

But did you remember to run an IT audit checklist?

At Fairdinkum Consulting, we see this every year: Businesses move quickly to implement plans, only to discover later that outdated systems, security gaps or unused tools are holding them back. A practical, detailed audit schedule early in Q1 helps prevent that.

Why Start the Year With an IT Audit Process?

Annual business planning often answers what you want to do this year. An IT system audit answers whether your technology can actually support it. Too often, businesses pay for tools they don’t fully use or assume backups are working without verification.

A Q1 IT audit checklist helps you:

• Validate assumptions made during planning
• Catch risks that weren’t visible at the budgeting stage
• Adjust priorities before spending is fully committed
• Avoid layering new tools on top of existing problems

Think of it as a reality check before execution accelerates.

1. Confirm Your Current IT Inventory Matches Your Plans

Before implementing Q1 initiatives, verify what you’re really working with today. If growth, hiring or remote work is part of your plan, aging hardware can quickly become a bottleneck. Aging equipment increases the risk of downtime, sensitive data loss and security issues—plus, it often costs more to maintain than to replace strategically. This step alone often uncovers hidden costs that can be reallocated more strategically.

Hardware & Devices

• Laptops, desktops, servers and network equipment in use
• Device age and warranty status
• Systems nearing end-of-life
• Personally owned vs. company-managed devices

Software, Licenses & Subscriptions

• Core business software and cloud tools supporting daily operations
• License counts vs. actual usage
• Tools added “temporarily” that became permanent
• Tools that auto-renew but no longer add value

2. Revisit Security Assumptions Before They Become Incidents

Security risks don’t pause for business planning cycles. It’s always smart to double-check as most cyber attacks exploit simple oversights like the following.

User Accounts & Access Controls

Every unnecessary account is an open door. Even well-run organizations are often surprised by how much access lingers where it shouldn’t:

• Former employee accounts that are still active
• Users with unnecessary admin privileges
• Shared or generic logins still in use

Patch Management & Updates

Unpatched systems remain one of the most common causes of breaches, so ensure you have:

• Operating system and antivirus software updates applied consistently
• Firmware updates on firewalls or network equipment
• Identified devices that haven’t checked in or received patches recently

3. Lock Down the Basics Before Expanding or Investing

As Q1 initiatives kick off, new security tools can help protect data…but only after strong fundamentals are in place.

Passwords & Authentication

Strong authentication remains one of the most effective defenses against data breaches available.

• Multi-factor authentication (MFA) enabled wherever possible
• Password policies that reflect today’s threat landscape
• Use of a secure password manager
• Secure remote access for off-site users and hybrid teams

Endpoint Protection & Monitoring

Remember: Security tools only help if someone is actively monitoring them. Confirm that you have:

• Antivirus or endpoint detection and response (EDR) on all devices
• Clear visibility into laptops used off-network / outside the office
• Alerts that are actively monitored and responded to

4. Validate Backups and Disaster Recovery Plans Before You Need Them

Many businesses assume backups are fine because they’ve “always worked.” But backups that aren’t tested regularly shouldn’t be trusted. Make sure you know the answer to the following questions for a reliable server backup strategy:

Backup Coverage, Testing & Recovery

• What data is backed up
• Where backups are stored (local, cloud, or both)
• How frequently backups run and how long sensitive data is retained
• When was the last restore test performed
• How long would it realistically take to recover critical systems
• Who is responsible during an outage or incident

5. Evaluate Employee Training & Awareness

Technology alone doesn’t stop cyber threats—people play a critical role. As activity ramps up again in Q1, the risk of human error increases. Short training refreshers early in the year help prevent costly mistakes later.

Employee Security Awareness

• Phishing recognition and social engineering awareness
• Secure file sharing and collaboration practices
• Clear expectations for remote and hybrid work
• Guidance on what to report and how

6. Recheck IT Alignment with Business Goals

Q1 is where strategy meets execution, and misalignment will show up quickly. Your official audit report should reflect where the business is going. After all, technology should enable that momentum, not slow teams down once execution begins.

Review how IT supports:

• New hires and onboarding timelines
• Process changes or system integrations
• Customer experience and performance expectations
• Industry or compliance requirements

7. Use Your IT Audit Checklist to Fine-Tune Budget Allocation

Even with an approved budget, there’s often flexibility early in the year. Once your IT audit is complete, budgeting becomes clearer and more strategic because you can:

• Prioritize remediation over unnecessary replacement
• Address risk before investing in new platforms
• Reallocate spend from unused tools to higher-impact needs

This approach leads to better outcomes without increasing the overall budget.

Start the Year With Confidence, Not Guesswork

Q1 is where our business planning assumptions are tested. An IT audit checklist gives SMB leaders the clarity they need to execute plans with fewer surprises, reduce risks and make smarter adjustments early—before any problems compound.

Fairdinkum’s managed services help businesses turn the insights from regular IT audits into practical, prioritized action—without unnecessary complexity or pressure to buy tools they don’t need.

If you’d like help reviewing your IT environment or planning next steps for the year, our team is here to help.