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Invoice Processing Telecom
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877.688.2200
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Invoice processing is the most involved and time-consuming aspect of telecom management. It has been shown that up to 90% of invoices contain errors that cost companies thousands of dollars each year. By performing a complete review of billing documentation and invoices, you can analyze and identify areas for potential savings. Once you have seen a comprehensive view of each invoice, this can be compared to service agreements, revealing discrepancies that signify overpayment. Refunds due to billing errors are a valid, though often overlooked method of procuring savings for your company.
Telecom invoices come in many different forms. Due to advances in technology, they no longer come in paper form only, but also electronic files in CD, Web, and Excel formats. While this allows for easier bill management, it is difficult to find any one person who is familiar with every billing method.
Identifying Errors
Unfortunately, finding errors in paper invoices is the most difficult part of the auditing process. The auditor has no choice but to manually search through each invoice to find the errors. While consultants are adequately trained in this area, it is still very time consuming. A more efficient method of auditing is using electronic formats that a computer can automatically sift through, without human involvement. The most convenient opportunity afforded to you by using this software is that you can perform analyses continually, as often as you choose, and with the click of a button. Unfortunately, this is not always possible, because not all invoices come in electronic form.
Not all vendors have the capabilities to support and produce electronic invoices. Even though telecom management has seen great advances in the last few years, the average company only receives up to 80% of its invoices electronically. The rest of your invoices must be manually reviewed by a trained consultant. In the coming years, we can expect the sale of software that can convert these bills into an electronic format, but that it not yet the case.
The most important part of finding billing errors and correcting them is checking these invoices against service agreements. You may find, through this process, that you are paying for services that are not included in a contract, or that you have kept paying for services that you have since cancelled. When reviewing invoices, you will also want to pay attention to unusual activity. With the help of a consultant, you can single out any invoices that seem unusually high, checking them for fraudulent activity. You would also do well to eliminate third party billing. These charges come at a much higher cost and may prevent you from doing more efficient business if your traffic is being routed to another carrier.
Invoice Consolidation
One of the best ways to reduce cost is to reduce the number of invoices that you receive. Companies can often spend up to $50 dollars on each invoice, considering mailing, routing, accounting, and payment costs. Although consolidation can take up to a year to complete, depending on the number of vendors you employ, it is well worth the savings that are accrued.
While completing this process, you should also consider converting as many invoices as possible to electronic format. This not only saves on mailing expenses, but also enables you to conduct audits more efficiently in the future. Be sure to work with a telecom consultant so that you can understand how to read and comprehend these electronic invoices, if you have not worked with them before. You vendor should also be able to assist you with this, as they should be actively interested in your understanding of the services they provide.
Telecom management is centered on the issue of controlling, understanding, and reviewing service invoices. They are not always accurate, nor will they be any time in the near future. However, advances in billing systems are constantly improving the accuracy and ease involved in managing your invoices. The only way to secure savings from your invoices is to take an active part in an audit. While working with a consultant, keep in mind that the purpose of an audit is to get what your company has paid for.
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