Telecommunications tops the list of expenses for most companies. With cell phones, landlines, PDAs and internet connections, many successful firms are turning to telecom expense management systems to keep track of all the variables. Known as TEM, these solutions are designed specifically to manage expenses and can be the first line of defense for issues of overspending and drain on personnel. But beyond simply managing invoices, most programs offer businesses options that may actually save companies money. Read on to learn about the various components of Telecom Expense Management.

Benefit of Telecommunications Expense Management - Inventory Tracking

Inventory management is at the core of most TEM systems. The software is designed to manage telecom expenses starting with tracking each element in a company’s communication network. TEM software has the ability to track each laptop, server, voice line and PDA. And beyond simply tracking, TEM software can report on usage and equipment breakage, alerting users when inventory needs to be replaced, removed or added.

Telecommunications Billing

With larger companies processing as many as 15,000 telecom-related bills per year, and smaller businesses spending significant hours on billing each year, it is no wonder companies are turning to automated TEM systems. TEM software saves manpower and increases accuracy. Because businesses can afford to audit only a small percentage of invoices, it is difficult to find errors. In fact, many accounting departments pay any bill within ten percent of the previous month. TEM software can save companies significant dollars, as it allows for each bill to be compared to contracts and actual usage, making it easy to catch overcharges and errors.

Telecommunications Expense Management Reporting

TEM reports are detailed and inclusive. Rather than single line item billing, TEM provides detailed reports, delineated for greater accuracy. Types of reports include:

• Inventory
• Audits
• Usage
• Cost Allocation
• Employee Cell Equipment
• Contract Renewals
• Vendor Scorecards
• Invoice Reports

Future Provisioning

Once a company has greater understanding of all of its telecom usage through TEM systems, it has greater control of future telecom purchases. From network expansion to mobile solutions, TEM can assist in accurate need assessment. Ultimately, companies save money both through accurate provisioning and through automated ordering systems.