Managing a profitable company is all about controlling costs enough that revenues outpace expenses and margins are strong enough to weather slower sales.
For many businesses, this cost-control starts with basic, universal costs, such as employee wages and space rental. But you need to dig deeper in your Expense Management.
As the coronavirus continues its march around the world, governments have turned to proven public health measures, such as social distancing, to physically disrupt the contagion. Yet, doing so has severed the flow of goods and people, stalled economies, and is in the process of delivering a global recession. Economic contagion is now spreading as fast as the disease itself.
To have your company expenses under control was always important – now it is crucial.
In addition to the standard overhead expenses that every firm experiences, there are a range of other expenses that are more dynamic and variant than bills like utilities. These expenses are known as the “Three T’s” and they include telecom (roaming), travel and technology costs.
To effectively manage the full life cycle of a telecom expense and telecom inventory, enterprises need resources (people with free time to do the work), knowledge and automation […] Managing telecom expenses requires a special blend of knowledge of IT, telecom services, corporate finance and other service providers’ billing procedures and their internal processes”
International Monetary Fund (IMF) says that the global economy will shrink by 3% this year. With every industry, function and geography affected, the amount of potential change to think through can be daunting.
We are here to help with your Telecom, Travel and Technology Expense solutions: travel tech organizer
TELECOM EXPENSE travel tech organizer
Telecom is the expense related to any telecommunication tools. This category of expense management includes wired and wireless telephone fees as well as the costs of phone and communication devices. The telecom category may seem to be fairly straight-forward—it is the cost of the company cell phone plans and Internet—but in actuality, it can be one of the most challenging expense categories to manage.
Telecom expense management (TEM) is challenging because the industry itself is fairly complicated. Plans shift and technologies evolve. Companies need to have someone who is current on the telecom industry to oversee the company’s expenses.
Whether you own your own small business or are in charge of the financials for a large company with 5000 employees, corporate travel expenses are likely a cause of significant stress. For companies with employees traveling internationally, the ability to stay connected with mobile devices today is imperative.
TRAVEL EXPENSE travel technology
Managing travel costs is another issue. U.S. corporate travelers take over 1.3 million business trips every year, and there is no standard. Reasons for trips vary, as do the hotel, flight and overall costs. Pricing fluctuates, changing with the seasons, frequency of events in the area, timing of the purchase, and general desirability of the location—and that makes setting estimates for travel expenses difficult. Also, clients may have different expectations of what your company will do to wine and dine them, and that can change your travel cost budgets as well.
Requiring employees to book through a corporate travel agency or through a single point of contact within your company helps, but even that policy hits snags as it may be cheaper for an employee to book directly and be reimbursed. Ultimately, travel expense reports are a necessity, regardless of booking methods, but clear expectations need to be placed as well.
For instance, is taking a taxi acceptable? How about an Uber? When, if ever, is flying business class an option?
TECHNOLOGY EXPENSE travel tech organizer
Finally, there is the cost of technology to consider. “Technology expense management refers to the management of technology inventory resources, contracts, invoices, and billing,” explains CrowdReviews. Unlike the two previous types of expense management, this one is easier to manage since these technology assets are controlled by the management. They also rely on management deciding whether to buy new technologies or not, thus, there is a greater degree of transparency and control.
However, it is still a slippery slope, especially if the people overseeing the purchase of new technology are not readily involved in the use or understanding of the needs related to the technology. The purchase of new equipment and software could result in major efficiency gains, but if there is a disconnect between the decisionmaker and the end user, this information could be lost or misinterpreted. Keeping both voices “at the table” will help make decisions more productive.
Although these costs typically can’t be avoided, we can help to significantly reduce the overall cost of that corporate telecom or roaming expenses.
Alertify specializes in ensuring significant savings on international roaming costs and can tailor specific solutions for our corporate partners. travel technology