In the current business environment, you need to stretch your money as far as possible. Considering that telecommunication services are one of the largest operating expenses a business faces, examine this first when you need to save costs. To make sure your business isn’t wasting money, look out for these telecom money wasters.
Many carriers put language into their contracts to make them automatically renew for the same length as the original contract. Additionally, you usually have to provide notice anywhere from 30 to 90 days before the contract’s end date to cancel the automatic renewal. Your best bet is to get this language removed from your contract. If you can’t get the language removed, submit your letter to cancel the automatic renewal at the same time as you send in your agreement.
Surcharges and Fees
Although carriers might advertise low rates, the fees and surcharges added to your bill can quickly increase the price you pay. In fact, your carrier can charge over 75 different fees, and the average wireless customer pays almost 18 percent in local, state, and federal fees. Although many of these fees and taxes are unavoidable, if you want to cut down on the amount you pay, you’ll need to lower your bill — the taxes on your bill appear as a percentage of the service charges.
Understanding a telecommunications bill is already challenging on its own. If you do business internationally, then you’re adding complicated tariffs on top of that. It’s easy, then, to see how billing errors can slip through undetected. In fact, it’s estimated that around 15 to 20 percent of telecommunication bills have an error. Even worse, about 80 percent of businesses will overspend on mobile bills, and most will do so by an average of 15 percent.
No One to Manage Telecom Expenses
Between surcharges, billing errors, and more, it’s easy to see why you need people who have the right knowledge to manage your telecommunication services. Yet many businesses don’t have dedicated people to help with these expenses. A company such as Asentinel helps create 100 percent electronic invoices to audit and monitor your telecom spending. It can also help you cut out unnecessary services, renegotiate with service providers, and adapt your services to fit within your budget so that you can save money.
Not Knowing Your Inventory
When you’re conducting an audit of your telecom services, take stock of your inventory so that you know whether you’re using the right equipment and so that you can be sure you’re not paying for equipment you don’t use. Add up the number of lines or circuits you have and see whether there are any that you no longer use or that you can eliminate for other reasons. Also see whether you can reduce your bandwidth while still maintaining acceptable processing speeds. Finally, check your data invoice to make sure you’re not paying for more than you use.
Help your business save money by making sure you’re not wasting it in one of these areas of telecommunication services. Your accountant will thank you, and you’ll boost cash flow.