Bills can uncover a lot about what services you use and how much each costs. Businesses often look to lower their overall payments, but as telecom setups become more complex, it can be difficult to accomplish. There are three IT expenses that are burning holes in your pockets which can impact organizations:
ONE. Recurring Payments
Many vendors have the option to design services to automatically renew and withdraw payments. This may come standard with a product or service, but businesses may not realize it until they get a better look at their bills. At times, organizations may even continually pay for a service they aren't using simply because it's a recurring payment. It will be important to understand the recurring costs of your particular setup. Wired telecom has fixed costs based on the number of users, while wireless expenses are based on network traffic. Telecom expense management can track recurring costs per vendor and identify what solutions aren't valuable.
TWO. Interest Costs
Service contracts have strict payment cycles with stipulations on consequences for late payments. As No Jitter explained, many businesses get their invoices within 20-23 days of the due date, which might not be enough time to process the invoice payment for some organizations. Many contracts attach interest on past due amounts and stipulate service suspension for 5-10 days for failure to pay. These issues along with dispute negotiations and corrections can rack up expenses that could have easily been avoided.
THREE. Simple Mistakes
Billing mistakes can be right in front of you and add up to be a major expense. Perhaps your organization obtained a trial of a service and the vendor continued the service for full price after the initial period was over. Also, there could be errors with discontinued solutions or lines that haven't been accurately reflected. It is important to not only identify these issues, but also get them addressed and resolved quickly.
TEM solutions provide reporting and auditing tools to quickly sort through invoices and detect any suspicious expenses. Organizations can use this information to eliminate additional hidden costs over time and reduce payments. With this type of solution, simple mistakes can be fixed and avoided entirely while determining areas where funding can be cut.
Telecom bills for an organization can be particularly challenging to navigate, as many businesses have different services from different vendors to analyze. Complexity of this nature can make it difficult to find costly telecom expenses that are hiding in plain sight like interest on late payments, recurring costs and simple billing errors. A TEM solution keeps accurate inventory of all telecom hardware, software and services across providers, ensuring that all costs are being monitored on a granular level.
About the Author: Chantel Soumis
Chantel Soumis brings over a decade of knowledge in workflow enhancement through the use of technology. Chantel studied marketing communications and business administration at Franklin University and proceeded to work in a fast, ambitious environment, assuring client delight in the healthcare and pharmaceutical industries. Passionate about project productivity and streamlining workflows through the use of technology, Chantel strives to inform organizations of Valicom’s advanced telecom expense management software and services by mastering communications and messaging while delivering helpful information and supporting resources.