Telecom auditing has become a complicated issue over the last ten years as telecommunication companies try to find ways of extracting extra money from service users.  It is so complicated that even the average household would be surprised at the results of an in-depth audit.

Trying to undertake a self audit can be extremely difficult if you are not working in the industry. There are changes occurring on an almost daily basis so it takes an expert in the field of telecom expense management to successfully manage an organization’s accounts.

One of the most important components to managing your telecommunications accounts is in understanding your contracts. This is particularly true where it is explicitly stated in the contract that fees and charges can be changed.

These contracts also include a notification period - for example, thirty days notice before a particular charge is increased. If you do not keep a careful watch on your invoices, you will be surprised how many customers are charged the new fee before the thirty days have expired.

This is just one example of why a professional telecom expense management team is vital to an organization’s use of these services. They have the time and knowledge to track back every single cost that is included in your invoices - including past invoices.

Your telecommunications system is supposed to work for you, making communications easy, reliable and affordable. No one minds paying a fair price for a system that enables a business to operate successfully.

Having said that, no one wants to pay for services they are not using, didn’t agree to, or for which a differnt price was quoted. Telecom auditing is about ensuring fairness - telecommunications providers receive fees and charges to which they are entitled, and you receive a service at a cost that you have agreed to.

Auditing has been a universally accepted concept for every aspect of business. The auditing of the telecommunication services soon became an integral part of every business thriving on telecom. While everyone was aware of what telecom auditing referred to, another powerful term came into the telecom circles – Telecom Expense Management , or TEM. Soon enough, telecom auditing and TEM became interchangeable. However, critics of the new-age solution, TEM, are of the view that TEM cannot replace telecom auditing. Does that mean there is a difference between the two? In today’s post, we will discuss the perceptive differences between them.

Internal auditing Vs Outsourced solution

Telecom auditors working within organizations perceive auditing as an internal activity while TEM is considered an outsourced solution. Being an external solution, it has threatened the internal resources working on the telecom audit.

Man Vs Machine

Another aspect of comparison between the two terms has been manual auditing versus the software-driven auditing. TEM employs software solutions to automate the management of telecom expenses in an organization. It is said that software auditing brings 100 percent accuracy in the results. The advocates of TEM argue that manual auditing remains an integral part of the expense management solution.

The terms may have slightly different definitions but the goals of TEM and telecom auditing are the same. The internal auditing team can work hand in hand with the company handing over the TEM solution. TEM gives importance to both manual and software auditing.

The argument between internal auditors and telecom companies will not last long as businesses are gradually realizing the importance of managing their telecom expenses with the help of emerging tools and technologies.

Keep watching this space for more information from the world of telecommunications.

In today’s post, we will look at what telecom audit has to offer to a business.

What is a telecom audit?

Telecommunication audit refers to the review of the telecom expenditure and the thorough examination of invoices, telecom tariffs, and plans as well as usage in order to catch errors and inadequacies. A telecom audit helps manage the telecom expenditure of a business effectively in the following ways:

• By recovering costs by rectifying errors
• By introducing a structured way of invoicing and telecom management
• By optimizing the benefits of the telecom services

What does telecom audit bring to a business?

Telecom audit is crucial to a business using telecom services because of all the short-term and long-term benefits it brings to the business. Let us look at some of the advantages of a telecom audit.

• A telecom auditor inspects old and current telecom invoices to identify the errors in billing and checks for other accounting errors. 
• The telecom audit helps recover money that is due to the company because of accounting and other errors.
• The telecom audit streamlines the process of invoicing, making sense of every penny spent. 
• The telecom audit reviews telecom plans and tariffs thoroughly to reap utmost benefits from the telecom service.
• An effective telecom audit assesses the telecom service and removes any unnecessary features, cutting down further costs. 
• The telecom report releases information on the usage of the telecom service, noticing the instances of overuse or unsolicited use. 
• The telecom audit looks at preventing any frauds and hacks. Security is one of the aspects facilitated by a professional telecom audit.
• The telecom audit makes sure that the telecom service and its usage complies with the policies of the business and aligns with its objectives.

Organizations are gradually becoming aware of the money they will save if they employ telecom management. However, most of the organizations rely on internal auditors and managers to handle telecom management. Deploying a company to manage your telecom audits is a good idea for many organizations. Let us look at why an organization needs the services of a telecom audit team.

• Organizations are often ill-equipped to handle telecom audits and telecom management internally. The telecom audit team is equipped to handle such work efficiently.
• The telecom companies often use an array of terms that are incomprehensible for the organization. The telecom audit team can make sense of the plans and terms being used and deliver the benefits to the organization.
• The telecom audit team tracks all the errors in billing and helps recover the money due.
• A professional telecom audit can reduce telecom expense by around 30 percent at least. The number may vary but telecom management companies have claimed to reduce the expenses of their clients by profitable margin.
• The telecom auditors maintain proper documentation on the orders and expenses, making future planning easier. Apart from maintaining documents, the auditors generate reports on various aspects of the telecom expenses.
• The telecom audit team briefs the client on the pros and cons of telecom plans. This helps make the organization make informed decisions.
• The telecom audit team employs methods to keep the usage of the telecom services in check.

The telecom audit team offers a professional and expert perspective on the usage of telecom services in an organization.