Communications services are one of the top expenses for many companies, a trend that looks like it will only continue to expand. With the exponential growth of data and mobility, the number of mobile users has passed that of desk-bound computer users.
Several factors are at play here. For one thing, mobile broadband networks and cloud computing have changed the way that data and systems are accessed. This makes it possible for users to stay connected all the time from wherever they travel. With the Internet of Things (IoT) expanding into the Industrial Internet of Things (IIoT), whole industries are going mobile to check, update and otherwise interact with an increasingly complex infrastructure.
This evolution has made it essential to strategically manage all of this technology — a task which includes stewardship of the related finances. Finance decision makers have to carefully weigh cost containment against the needs of the organization to maintain reliable communications networks. Transparency and accountability are key factors for finance executives looking for quality data to inform budget decisions and cost analyses. That's where Telecom Expense Management comes in. TEM is designed to improve the visibility of data and assist the finance team when it comes to putting money in the right places.
How to Improve Finance's Access to IT Spend
The roles of finance executives are intricately connected with those of the CIO and IT top brass. Communication is the key to avoiding cost overruns that don't address the needs and risks faced by the entire organization. To accomplish this, the finance team needs up-to-date access to accurate IT spending. Here's how TEM provides the solutions finance executives need:
Trend analysis that enables accurate forecasting
Provides real information to justify an increase or decrease in spending
Supplies actual consumption data to determine costs allocation and chargebacks
Demonstrates return on investment of various efforts
What Are the Benefits of Alignment Finance and IT via TEM?
IT is a cost center and finance's job is to monitor and contain costs — so it's only natural that competing agendas sometimes emerge. The best tiebreaker is information that helps both sides recognize what's best for the organization. TEM gives finance managers an overview of communications spend. Even better, it can be combined with integrated ERP, budgeting and other key systems, for improvements in control and accountability.
Good things happen when IT spending is governed by data-driven decision making. As long as finance can get to the right data points and executives base their planning on the right reasons, greater cohesion develops between these interdependent teams. When finance leaders can use TEM data to show IT leaders what they are basing their decisions on, greater understanding ensues. This leads to common goals and clear processes.
TEM Impact on Risk Reduction and Compliance
TEM systems facilitate reduced risks and greater compliance and lead to more accurate tracking of expenses. Large enterprises may have thousands of telecom bills that complicate the accuracy of reporting and jeopardize data accuracy and transparency. Consistent errors can be difficult to find and correct, resulting in the loss of up to millions of dollars. Using effective TEM systems greatly reduces the potential for unauthorized charges.
The Sarbanes-Oxley (SOX) Act asks CEOs to sign off on the accuracy of internal controls for the assignment of revenue and expenses. TEM automates SOX reporting and then stores the required telecom expense data for compliance purposes. This gives CFOs the confidence to tell the board and shareholders about the controls put in place for a top expense item. TEM also enforces adherence to corporate and regulatory guidelines.
Comprehensive Communications Visibility
Communications technology drives every part of a company's operations. The stakes are high when it comes to effective decision making by finance and IT leaders. There's no room for dysfunction and misinformation due to poor access to data. That's why your company needs a TEM partner it can trust to build better partnerships between these two departments.
Employees count on a variety of communication vehicles to complete their work. That includes mobile, voice and video channels across multiple devices. The right TEM strategy lets the CFO effectively manage the business' communication needs. TEM can provide one source of truth recognized by the entire business, and that eliminates the back and forth over conflicting reporting sources. Consequently, finance leaders can concentrate on making the best decisions for the company.
About the Author: Victor H.
Victor brings nearly ten years of enterprise and SMB sales experience in the information technology and software space. Prior to joining Valicom, he served as regional channel sales manager working for one of the industry's largest enterprise labeling software companies. With a focus on great customer service in helping channel partners grow their businesses, Victor joined the Valicom team in late 2015 after relocating to the Madison area. Victor holds a bachelor's degree in Communication from UW-Milwaukee, and when he's not in the office he enjoys exercising, travelling abroad, and spending time with his growing family.