Has your company ever cancelled a wireless phone line because a team member left, only to find that months later you’re still being billed? While this seems like a simple billing error, over months and years of this−and when taking into account several dozen wireless lines, devices and data plans− these kinds of errors can add up to a significant expense. Analysts tell us that 85% of the telecom invoices customers receive from vendors have billing errors, costing organizations up to 12% of their annual telecom expenses in inflated costs.
The first step in better managing telecom expenses is to conduct a telecom audit. A telecom audit includes a detailed investigation into a company’s telecom inventory of all phone, data and wireless billings, identifying any areas of inconsistencies, bill reconciliation and finally outlining future costs. Before starting an audit, either in-house or working with an outside specialist, ask potential providers about their best practices and look for ways to prepare for the audit internally, including:
- Gathering all telecom bills and inventory- The first step is to pull together an entire inventory of the company’s telecom bills and records. This should include all current invoices and any past-due invoices that may be in question, especially those that list past credits or notes from the carrier. During this stage, it’s a good idea to contact each vendor and ask for an in-depth breakdown of all devices, lines−wired and wireless−and all data plans, this is sometimes called a Customer Service Record (CSR).
Reviewing telecom bills can be tricky but look for total expense per service provider, the total number of invoices processed per month and the average time to process an invoice. Each bill will include a service fee, features, and usage costs and any additional fees or surcharges. If leveraging a telecom specialist, they can help with this process and help you decode the CSR. Keep in mind it’s the carrier’s’ responsibility to bill and document the expected payment and schedule accurately. If this new inventory list does not sync with what’s been agreed upon, this is an area that can be further analyzed.
- Calculating spending and consider consolidating- In tandem with gathering telecom bills and collecting an inventory of telecom assets, look at a snapshot of the last 12 months or so of telecom spending from the accounting department. This will serve as a baseline for how much is being spent versus how much has been budgeted for, etc. Consider centralizing telecom management from bill payment to ordering to better track spending. If each office, for example, has a different process for requesting new devices during the new hire and onboarding process, it’s possible changes made to individuals phones or data plans can slip through the cracks and add up to larger than expected bills.
- Identify how to recoup savings from current bills and how to save on future spending- Taking complete inventory during an audit allows organizations to evaluate what features, apps, plans, or other services are critical to the business, and which are not. Or where wireless minutes are not being used, or overages are regularly occurring. It also allows organizations to identify which services can be negotiated or shopped around to find a more cost-effective alternative. If working with a provider, look for a professional telecom expert that has the in-depth knowledge of carrier billing procedures as well as an understanding of industry-specific compliance regulations or internal policies. The best providers can work directly with carriers and service providers to resolve the claim, correct any errors and secure the maximum refund possible.
Without proper planning and an up-to-date inventory, unfortunately, telecom errors will still exist, overspend will happen, and carriers will continue to charge for services that are being used. Instead, take these steps to gain a 360-degree view into the company’s communications inventory to reduce spending and focus the business.