Best Practices

Why Your Business Needs IT Documentation

November 25, 20245 min readBest Practices

IT documentation isn't sexy, but it's the difference between a business that runs smoothly and one that grinds to a halt when key people are unavailable.

It's 2 AM. Your server is down. The person who set it up left the company six months ago. Nobody knows the admin password. Nobody knows where the backup configurations are stored. Your business is offline, and the clock is ticking. This scenario is entirely preventable with proper IT documentation.

The Real Cost of No Documentation

Let's be honest: most small businesses don't have comprehensive IT documentation. "It's all in Bob's head" or "We'll document it later" are common refrains. But this technical debt compounds fast:

When Employees Leave

Your IT person quits. Suddenly nobody knows WiFi passwords, server configurations, vendor accounts, or which services you're even paying for. You're essentially starting from scratch.

During Emergencies

Servers crash at the worst times—usually weekends or holidays. Without documentation, even simple recovery tasks become multi-hour ordeals of trial and error.

For New Hires

Onboarding new IT staff takes 3-6 months instead of 3-6 weeks because they have to reverse-engineer everything. That's months of reduced productivity you're paying for.

Vendor Lock-In

Without documentation, you're completely dependent on your current IT vendor. They can charge whatever they want because switching would be impossibly complex.

Real Example: A Seattle startup I worked with spent $15,000 recovering from a server failure because they had zero documentation. With proper docs, it would've been a 30-minute restore job.

What Should You Document?

IT documentation doesn't mean documenting everything—that's overwhelming and counterproductive. Focus on these critical areas:

1. Network Infrastructure

  • Network diagram showing all devices, switches, routers, and connections
  • IP address assignments (static and DHCP ranges)
  • VLAN configurations
  • Firewall rules and port forwarding
  • WiFi network names, passwords, and configuration

2. User Accounts & Access

  • Who has access to what systems (use a password manager like 1Password Business)
  • Admin account procedures
  • Onboarding checklist for new employees
  • Offboarding checklist for departing employees

3. Servers & Cloud Services

  • Server inventory (physical and virtual)
  • What each server does (don't name them "PROD01"—use descriptive names)
  • Cloud services you're using (AWS, Azure, Google Cloud, etc.)
  • Backup procedures and test results
  • Disaster recovery procedures

4. Software & Licenses

  • All software and SaaS subscriptions
  • License keys and renewal dates
  • Cost per user/month
  • Support contact information

5. Vendor & Support Contacts

  • ISP account numbers and support contacts
  • Hardware vendors and warranties
  • IT service providers and MSPs
  • Software support contacts

6. Procedures & Playbooks

  • Common troubleshooting steps
  • How to restore from backup
  • Security incident response plan
  • Change management process

How to Start Documenting (Without Overwhelm)

The biggest mistake is trying to document everything at once. You'll burn out and quit. Instead:

The 80/20 Approach

  1. Week 1:Document passwords and accounts in a password manager. This alone solves most "I'm locked out" scenarios.
  2. Week 2:Create a network diagram. Use draw.io or Lucidchart—doesn't need to be perfect, just accurate.
  3. Week 3:List all software/SaaS subscriptions with renewal dates. This often reveals you're paying for stuff nobody uses.
  4. Week 4:Document backup and recovery procedures. Test them.
  5. Ongoing:Every time you solve a problem, document the solution. Build your knowledge base organically.

Documentation Tools That Actually Work

You don't need expensive enterprise software. Here's what Seattle businesses I work with use successfully:

For Passwords

1Password Business, LastPass, Bitwarden

For Documentation

Notion, Confluence, GitHub Wiki, or just Google Docs

For Network Diagrams

draw.io, Lucidchart, or Microsoft Visio

For IT Asset Management

Snipe-IT (free), Asset Panda, or a simple spreadsheet

Pro Tip: Pick one tool and stick with it. Having documentation scattered across email, Slack, Word docs, and sticky notes is worse than no documentation at all.

The Secret to Keeping Documentation Current

Here's the hard truth: documentation gets outdated fast. The secret isn't trying harder to keep everything updated—it's building documentation into your workflow:

  • When you change a password, update the password manager immediately—not later
  • When you add a new service, document it before you use it in production
  • When someone asks "how do I...?", write down the answer—that's your knowledge base
  • Quarterly review: Block 2 hours every quarter to review and update critical docs

Make documentation a requirement, not a nice-to-have. Don't approve changes or new systems unless they're documented first.

The Bottom Line

IT documentation isn't glamorous. It won't impress customers or boost sales. But it's the foundation of a resilient business that can survive employee turnover, recover from disasters, and scale without chaos.

The best time to start documenting was when you set everything up. The second-best time is right now.

Need Help With IT Documentation?

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