Telecom Tips for Small Midsize Business

Information on Telecom, Cell-phones and More for the Small/Mid-sized Business

Archive for the 'Billing' Category

Acronym: CSR

CSR - Customer Service Record - A document that details service configuration and monthly recurring service billing. Many times it is filled with codes that also may need to be defined to allow the customer to fully understand the document. This document is a valuable tool in ensuring that the customer is receiving and paying for the service they require. A full review has been known to discover chargeable features that are not being used nor needed.

Term: Telecom Third Party Biller

When a company bills through the telephone carrier for services, either they supply or bill for another, they are classified as a Third Party Biller.
Third party billing is the single most important thing to look for on a telecommunications bill. Many times these charges are in error and should be disputed. Most times though they will need to be challenged to both the telecommunications company and the third party biller, since most time the telecommunications company can not remove the charges themselves.
You can put a Third Party Billing block on your service which will prevent Third Party Billing to you, most of the time.

How to Save money on Telecommunications

After electric and fuel costs, one of the biggest cost to do business is through communications. It’s nearly impossible for a business to survive today without using telephones and a connection to the Internet. But these services aren’t cheap and it’s not hard for them to become out of control. There are ways to control these costs, perhaps even to decrease those expenses.
To begin you will start with the obvious.
Check invoices for errors
This is so obvious that it is sometimes overlooked. It is quite common for telecommunication invoices to have errors. These errors could be as simple as paying above the cost of a contracted service, to as complex as out right fraud. The fraud though is not done by your carrier, but via third-billing charges of others.
Each and every month those invoices need to be checked and audited. A whole business has arisen due to the errors that occur on invoices, but many small businesses won’t have enough savings to hire them. Although it may not be a bad idea to have a professional come in once a year to assist in the review.
Some common errors include:
• Services invoiced at an incorrect rate.
• Services that have been disconnected, but still being invoiced.
• Incorrect Taxes and Service Fees.
• Third-Party Billing Charges.
Check the Cellular Invoice
Don’t forget to look at your cellular invoices. Do you use Informational Services (411) on your cell phone? Many of the providers charge a huge fee for those calls.
Are you paying for a Text Messaging plan, but never use it? Or worst are you texting, but don’t have a plan? It doesn’t take long for a few text messages a day to create a huge invoice for text messaging if you aren’t already in a plan.
Depending on how many handsets you have on your plan, if you are playing insurance, it could actually cost more then replacing a handset at cost.
Review the contracts
It’s not uncommon for small businesses to request services and after the end of the contract period a carrier will renew at the same rate. If you negotiate your contact, it’s possible that there may be a better rate. Or at worst you never negotiated a contract and you are being charged the per-month cost of services. These rates could be as much as 60% more than having a term commitment.
Even if you are in a long-term commitment, it could be to your advantage to periodically review with your service provider’s account manager to see if you may be able to lower your rates.
Consider alternatives
Technology changes every day, and something that was costly or impossible for a small business to do in the past may be available today. By using the Internet, it’s now possible to do Video Conferencing with the standard computer equipment on your desk, when in the past you needed specialized equipment.
To help with the costs of Long-Distance telephone calls, you can use the Internet and VoIP for calls. There’s also the possibly of using secure Instant Messaging and email instead of placing a telephone call.
Create a Technology Policy
Unfortunately some of the largest waste come from employees misusing or abusing office technology. This could be anything from using the Internet to do personal shopping on company time, to taking personal calls using the company’s Toll-free number, to opening the company to unauthorized data collection companies.
It’s important to have a technology policy in place and have your employees understand and adhere to it. Since technology is always changing, the policy may need to be addressed a few times each year.

Evaluate the entire cost

Whenever it’s time to receive bids and to determine a winner of a telecom service contract, all items should be evaluated to determine the less cost vendor.
Non-recurring charges
Non-recurring charges are those charges that may occur when you install, change or add services. Inquire about specific charges for these services. Vendors may offer price breaks based on the term of the agreement or length of contract. These costs could vary greatly from one vendor to another, and a vendor with a low installation cost could show a savings on the overall contract.
Taxes, surcharges and Fees
These charges may be as much as 40% of the total on a monthly telecommunications invoice. Many times these are not factored into the total cost on evaluation and when the first invoice arrives there is shock.
Taxes are generally clear-cut and the same among vendors. Surcharges and fees may not be as clear. Some fees are mandated and those would be the same for all carriers. However, service providers are allowed to recoup monies for certain expenses they incur. These charges are passed through to the customer. One example may be to recover dollars the provider pays in property taxes.
The best way to determine the total cost of a contact is to calculate all of these charges for the entire projected length of the contact. That way you will be receiving the service you need at the best possible price.