Protect your cash flow…burning profits?
That would be crazy, right? It would be ridiculous to take your profits and just BURN THEM. Most people would think so and we most certainly think it would be as well. But believe it or not that is what business owners, CFO’s, CEO’s and corporate managers do every month when their offices receive error laden telecom and utility bills for their people or facilities.
In most cases offices are paying for telecom and utility invoices without closely looking at them. You may be thinking … That is what they should do. That is what they are charging, so of course, that is what we are paying for the telecom and utilities services that are performed. I trust that my vendors are charging me accurately and correctly. DO YOU REALLY THINK SO? Or maybe you have an AP person, Administrator or IT personal that reviews these invoices before they go out. And… you feel they are experts at auditing invoices. Right? You fully trust they are finding any contract or agreement discrepancies, duplicates, overcharges, errors etc… and that once they find them they are contacting the vendor to make the corrections and receive the credits.
Well what if I told you recent surveys suggest those bills may, in as many as four out of five cases, include overcharges or other errors. So how likely is it that you are overpaying for telecom and utility services? The average utility bill includes over 150 components. Let’s face it business owners, managers and executives in most cases don’t have time to make sure providers didn’t make any mistakes.
Protecting your cash flow…
With today’s rising costs, corporate managers need to protect cash flow by cutting containable or controllable costs. Very often-overlooked area of potentially excessive operating expenses is corporate telecom and utility bills. Why? Several reasons we have heard from our customers are;
- Confusion in rates
- Contracts and agreements with unfamiliar terms
- Bundling choices
- Constant changes in technology
- Confusing invoices and more
There are many reasons why auditing billing may be pushed aside but again pushing it aside means you are BURNING YOUR PROFITS. There are usually several rate structures available to corporate users. Don’t rely on your telecom or utility vendors to assign you the most cost-effective rate or plan. For fast-growing companies it pays to compare various options at least once a year.
Here is an example; in the case for utility vendors they penalize customers for using inefficient machinery that requires a surge of power at start-up. If a customer has a maximum demand of 260 kilovolt amperes (KVA) for firing up equipment, there is a demand charge based on 90% of KVA rather than the total kilowatts actually consumed (KW). Here’s where a once-a-year audit can help. Because of obscure utility regulations, you could be billed for more than you use.
Organizations have reduced personnel as much as possible and are trying to focus on core activities – as they should! Telecom and utility audits performed by experts in the field produce as much as 35% savings.
START protecting your cash flow, STOP burning profits and SAVE on operating expenses. If you have questions, on your utility or telecom billing and your potential savings, contact LT~CRS for more information.