Telecom Expense Audits: How Your Company Can Save up to Seven Figures a Year on Expenses in 2024

Are you ready to uncover substantial savings for your business? Research shows that telecom expense audits can save companies a significant amount of cash annually, with some reports stating up to one million dollars. But that's just the beginning. Beyond these impressive cost savings, telecom expense audits can significantly improve technology visibility and free up money to invest in other parts of your business. Imagine how this could improve your business’s customer experiences, efficiency, and bottom line. A recent Gartner study revealed that 70% of CFOs list lowering expenses in 2024 as a top priority. With companies typically allocating 3-5% of their budget to IT, it's clear why so many want to reduce telecom spending. Whether you're looking to boost your cash flow, optimize costs, or revamp your IT infrastructure, the insights ahead are invaluable.

Keep reading as we dive into how telecom expense audits can be a game-changer for your business.

What Is a Telecom Expense Audit?

A telecom expense audit is a deep analysis of your current telecom expenditures.

It involves analyzing invoices, vendor contracts, IT infrastructure, and telecommunications expenses to identify errors, inefficiencies, and potential savings. These audits help uncover bloated expenses, ensuring that your company is not overpaying for telecom services and is utilizing its resources optimally. In essence, a telecom expense audit streamlines your telecom estate, leading to enhanced cost efficiency and better resource management.

Here are seven ways telecom expense audits can improve costs for companies this year.

1. Shed light on billing errors.

Studies from analyst firms state that there are often errors in billing. Telecom expense audits routinely find overcharges and incorrect rates that bloat bills. By saving you money, these audits allow you to redirect funds to other crucial areas of your business. They also provide a solid baseline for negotiating with new vendors and can even highlight areas ripe for innovation. This approach offers the quickest way to increase cash flow without raising prices, launching expensive marketing campaigns, or implementing staff changes.

2. Uncover unused services.

In addition to finding errors, telecom expense audits can also detect unused resources. Companies often get charged for services they no longer use – or never used in the first place. Auditing this expenditure provides a clearer picture of your needs and leads to significant savings. It can also boost cash flow for both small and enterprise-level businesses, allowing you to recoup some of the money you overpaid. It's not uncommon to negotiate refunds for charges dating back two years or more.

3. Find and eliminate duplicate billing.

Businesses are shockingly susceptible to duplicate service charges. Duplicate services may occur when multiple locations pay for the same service. Let's paint an all-too-common scenario: Imagine you have twenty locations. Now, envision being charged for duplicate telecom services at half of them. And remember, this is just one service. This situation can happen across every service you use. Identifying these charges – for even a tiny fraction of the services you pay for – can lead to significant savings. Remember, many invoices are subject to errors.

4. Spot contract adherence issues.

Invoices often overlook agreed-upon pricing guarantees. Whenever invoices include discrepancies over price guarantees or agreed-upon discounts it is called a contract adherence issue. Some examples could include:

· Being charged late fees at 30 days when the contract says net 60.

· A contract quotes $100/circuit, but the bill shows $119.

This often happens because internal quoting and sales tools can be different than the billing platform. By re-negotiating contracts or by seeking a new vendor, you can uncover savings and secure better services. However, handling this yourself can be costly and time-consuming.

5. Reveal incorrect taxation.

Occasionally, recognizing tax mistakes can lead to substantial savings. Telecom invoice errors often stem from companies charging incorrect tax rates. Though these discrepancies may seem minor, the costs can accumulate over time. These audits excel at finding inconsistent tax fees on your invoices and rectifying them. This not only saves you money but can also result in refunds for incorrect charges. Depending on the tax fees involved, the savings can be substantial.

6. Locate plan mismatches.

Review contracts to avoid overpaying due to mismatched plans. This oversight means your business might routinely incur costs for services that are unnecessary or ill-suited to your needs. A comprehensive telecom expense audit can identify these plan mismatches, which can drain your financial resources over time. For example, your current plan may not align with your actual usage, leading to costly overage fees. Conversely, you might be paying for capacity that far exceeds your requirements. Renegotiating your plan to better match your needs can result in significant long-term savings.

7. Uncover optimization opportunities.

Locate better vendor alignment, combined services, and more cost-effective solutions. Telecom expense audits facilitate the consolidation of services, which streamlines your operations and reduces administrative burden. The outcome is a cost-effective solution that optimizes your telecom resources, ensuring you get the best value while supporting or even enhancing the quality of service.

Don’t Throw Money Away!

Now is the perfect time to audit your telecom expenses. Advances in technology have created new opportunities to cut costs without compromising efficiency. An audit can uncover cost-saving opportunities that can be reinvested into customer support initiatives, thereby improving client relationships.

Conducting a professional telecom audit is the most straightforward way to achieve these goals. Reach out today to discuss how we can reduce your IT costs. Our expert team will audit your current expenses and help you find solutions that best suit your goals moving forward. Schedule a call today!