Often in organizations, telecommunications expenses are allocated at too high of a level, without regard for the type of usage or the purpose of the service. This kind of high level accounting can short-circuit existing internal incentives that are designed to reduce expenses.
If managers, department heads and other personnel who are responsible for various slices of an organization’s budget aren’t provided with enough information about their telecommunications expenses, it won’t even occur to them to make decisions that lead to reductions in costs.
This is typically where the AP folks explain that they don’t have anywhere near enough time to allocate costs to such a granular level – not to mention they wouldn’t know where to start. This is telecom after all, and who understands that?
So what’s the solution?
Get a tool, and get a partner, that knows telecom. Then you get to take advantage of software and highly refined processes that make granular cost allocation a breeze. Taking the time setup and fine tune an allocation program can then seamlessly provide much greater levels of detail to almost any existing AP system.
The visibility and exposure that can be provided to the members of your management team through better cost allocation will empower them to make better decisions that reduce costs and streamline your telecommunications spend. By being able to contrast or compare different departments or locations, and having access to both historical and trending data, the management of telecom and mobile costs can become PROactive instead of REactive.
It also allows finance to better understand what is driving costs, and how the needs vary throughout the organization. With most companies striving for intelligent growth, or dealing with mergers and acquisitions, this type of data can be a lifesaver.