With the world more connected than ever, proper internal and external communication is imperative for modern businesses. This means investing in the right communication technology and hiring the best service providers.
But how do businesses know if they’re spending the right amount of money on these expenses? How can they be sure that their telecommunications budget is being allocated properly?
Telecom audits exist for this very reason. Auditing companies can correct any errors in financial statements, or to identify areas where businesses can save money or get refunds. In this article, we’ll be covering what telecom audits are, how they work, and their overall benefits so businesses can have a better understanding of how to leverage these services.
What is a telecom audit?
Before going over what a telecom audit is, it’s important to clear up just what we mean by “telecom.”
Telecom is short for telecommunications, which is the exchange of information over large distances through electronic means. Any form of voice, data, and video communication go under telecommunications. Telecom thus incorporates the use of electronic devices such as cell phones and landlines, as well as specific services such as the internet and fax machines.
It wouldn’t surprise anyone when we say that modern businesses heavily rely on telecommunications for their daily operations. Communicating with employees and clients requires the use of phones, emails, and other devices to accomplish daily tasks.
Telecom audits is a process that looks through a business’s telecommunication expenses and identifies areas that they might be overspending. Professional auditors will look at local telephone bills, wireless services, internet bills, long-distance calls, and other charges for inaccuracies.
Companies can save thousands of dollars each year from not just resolving inaccuracies in their telecom bills, but also through refunds and credits that they may not have been aware of prior to an audit.
How do telecom audits work?
Telecom audits usually begin with businesses meeting with their contracted auditors. Here, clients can discuss their industry, the type of telecom technologies they typically use, and potential cost-saving solutions offered by the auditors.
Auditors will then be granted access to the business’s telecom bills and related documents. Using proprietary knowledge and industry expertise, auditors will analyze invoices and services for any errors, insufficiencies, and anomalies.
They’ll also review each document for any areas where the client can receive any credits or refunds. Many contractors offer portals that clients can use to track their auditing progress as it’s being completed.
Once the initial auditing process is completed, most contractors provide a temporary report that details everything a client needs to know about their telecom documents. The contractor will also provide a comprehensive list of recommendations detailing what actions the client should take using the findings from the report.
While the auditing process is complete after the final recommendations are delivered, some contractors can assist businesses with implementing cost-saving solutions and obtaining any refunds.
Why are telecom audits important?
Keeping track of every telecommunication expense is a tall order for even the largest corporation. Oftentimes, companies contract multiple carriers for various services, creating different invoice formats.
Factors such as this cause late payments or small errors such as a miscalculation or misspelling.
Almost 65% of businesses are incurring late payment fees from their telecom service providers. Studies have shown that between 7-12% of all telecom bills paid by businesses contain errors. For large companies, this is likely a substantial amount of money that they’re losing each month.
Businesses might even be paying for services that they don’t even need just by virtue of not checking these costs thoroughly. Telecom expense audits help eliminate these errors by thoroughly checking every invoice and payment to make sure all of the information is accurate.
What are the benefits of telecom auditing?
We’ve outlined why telecom audits are so important, but it’s worth mentioning its specific benefits.
As we’ve mentioned, telecom audits identify possible billing errors. This prevents businesses from wasting time and money on revisions and penalties. It also identifies all unnecessary lines, circuits, and features. Auditors will recommend which services their client needs and what they can let go of.
Getting a better understanding of telecom spending allows companies to create a proper telecom budget and allocate spending accordingly. By using their resources more effectively, businesses can improve their bottom line.
Telecom audits also identify possible phone abuse or toll fraud. It can also provide a snapshot of the overall phone systems and which trunks are being over or underutilized. Audits also provide insight on things like peak call times, allowing companies to respond to their customers in a timely fashion.
Many auditors can contact carriers and resolve certain issues by request so the client doesn’t have to. This saves businesses time while improving their reputation with carriers.
Telecom audits also eliminate the need for a company’s internal department to track and monitor spending as much as they used to. While companies should always execute their own telecom expense management, it’s still less work for IT departments that can instead focus on other projects.
How to leverage a telecom audit
Before getting a telecom audit done, businesses should understand some key telecom terms to get a full understanding of an auditing report.
Monthly recurring charges are the base rate on a standard bill, and several services are often bundled together. When auditors examine telecom usage charges, businesses it refers to things such as 411 directory assistance, callbacks, event recording measured through minutes or total events.
Third-party billing is often hidden fees where the only way to reduce them is by checking for discrepancies. Telecom audits also identify unused features by service providers, which can often be additional services from the beginning of a working contract that businesses may have forgotten about.
Aside from reducing waste and eliminating financially harmful errors, telecom audits can help companies discover savings. These extra funds allow firms to finance certain projects and invest in technology that can drastically improve their efficiency.
Businesses often use telecom audit savings for budget offsets, network expansions, increasing bandwidth, equipment upgrades, and the purchase of better technology. Telecom audits can therefore provide opportunities for businesses to expand if they allocate their savings correctly.
Knowing what to look for in a typical telecom audit will help businesses understand how to properly leverage their audit reports.
What to look for in a telecom auditing company
While getting a telecom audit is becoming imperative, it can be difficult for companies to choose the right firm. Generally speaking, the top telecom auditing companies offer plenty of useful services along with a track record of effective collaboration.
Telecom audit companies with a long auditing history will extract more useful information from invoices through their subject matter experience. Free telecom audit reviews or quotes are signs of a reliable company, as this reduces financial risk for potential clients looking for a reliable consultation.
Refunds and money-back guarantees are also indicators of a reliable auditor, as they recognize that spending money on an audit that doesn’t turn any results can be frustrating for clients. Another positive indicator for a reliable auditor is their willingness to contact service providers and carriers to resolve any errors or clarify any information before making any recommendations for their clients.
Businesses should also look for auditing companies that offer client portals to track progress and to deliver reports. This vastly improves communication between auditors and businesses, while providing greater access to auditing reports for various departments.
Save and grow with telecom audits
Telecommunications is extremely important in today’s business landscape. When businesses know how effectively they’re spending money on these technologies will lead to savings and overall growth.
If your business is looking for telecom audit solutions, contact us today.