How Telecom Expense Management Benefits Large Scale Enterprises

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StrategyDriven Managing Your Finances Article | How Telecom Expense Management Benefits Large Scale Enterprises

Any organization on a fast growth track often outpaces its strategic technology roll-out plans. You may be utilizing a mobile workforce, or you may be managing a team of remote employees. You may want to acquire VoIP, faster Internet, or cloud-based servers. While you may have the staff to suggest solutions, your Accounts Payable function does not necessarily have the manpower to monitor the resulting expenses. This is where telecom expense management companies play a crucial role for your P&L.

Technology Asset Management

Even when the vendor procurement function manages technology asset acquisition efficiently, keeping track of inventory and utilization often becomes a costly “second thought”. This is where hiring telecom expense management companies to manage technology assets at an enterprise level avoids shortages, service disruptions, and redundancies. These companies can quote, contract, and monitor vendor billing, as well as capitalize on vendor consolidation to acquire assets at the best price points.

A good illustration of the value created by TEM vendors at an enterprise level can be found in the reviews published in the Gartner 2021 Market Guide TEM Vendors, the top reference in the industry. TEM providers offer a variety of services to streamline asset inventory management, invoice auditing and payment, as well as usage tracking and reporting.

Billing Audits & Pay

Telecom and technology billing can read like a foreign language to even the most qualified accounting clerk. TEM experts will scrutinize each bill for inaccuracies and overcharges. When new technology or services are acquired, billing auditors will ensure that the installation charges and subsequent invoicing are accurate. In addition, these professionals will find out misapplied rates resulting in overpayments. Billing audits are time-consuming tasks: when managed by TEM experts, Accounts Payable staff can focus on other value-adding processes.


Service Audits

Implementing a proactive expense management team can save organizations a significant percentage on their telecom and technology costs. In reality however, most companies don’t employ anyone with the knowledge or time to monitor service costs effectively. TEM experts identify savings opportunities by monitoring in quasi real-time the evolving needs and utilization rate of technology assets in an organization.

Enterprise-level growth often involves adding service locations and sales offices. It is typical to observe vendor invoices going to multiple offices when centralized billing would be way more cost-effective. Similarly, multiple departments inside the same organization may be adding lines or services without authorization or disregarding company procurement policies, and soon enough hundreds of invoices flow to local managers without any kind of control. Telecom expense management professionals spot these issues and coordinate with vendors to ensure cost-effective billing consolidation.

Mergers & Acquisitions Cost Management

Mergers and acquisitions often result in growing pains. With minimal interference, TEM companies oversee procurement and audit processes to ensure that technology needs are adequately met without excessive overlap or costly redundancies. While the C suite focuses on moving the expanding organization forward, TEM professionals work behind the scenes to sort out the details of expense consolidation, service activation and termination, and vendor invoice auditing.

Proactive cost avoidance should be an OKR in any organization. Telecom expense management companies help organizations achieve measurable results in cost reduction and effective inventory management.

Tips on Investing as a Business Owner

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StrategyDriven Managing Your Finances Article |Investing as a Business Owner|Tips on Investing as a Business OwnerA wise business owner will always look for great ways to invest their surplus revenue. Investing allows you to make the money you have increase in value and give you more options in the future. Investing may be a bit of a risk, but in some ways, it acts as a protective thing too. That is because you are not putting all eggs in one basket. Diversifying your investments can mean that you have capital when things go bad in one area. When it comes to investing, the one thing that you really need to do is ensure that you read the small print. Do not ever get into an investment you don’t understand, either. This can affect your finances as well as your reputation if the company you invest in turns out to be bad. Here are a few things to think about as a business investor:

An Investment Plan

It makes sense for a business owner to create an investment plan. This helps you develop a better understanding of your finances and the risk associated with the investments you want to make and create a portfolio that enhances your reputation, among other things. You should never go full steam ahead into any financial decision. When you are considering investing in a certain company, you should read about them. Are the any conflicts of interest? Does their brand vision align with your own? You need to work out what your red lines are and do not cross them, no matter how lucrative a certain dal may appear. You need to do a forensic examination of your business finances too. Is this really the best time to invest? What debt do you have? What new assets should you be buying? You will need to work out your financial goals and your long-term plan, and how long you plan on investing in certain areas. There are three main criteria you need to examine before you invest: what is the safety of the investment, your growth, and your income? You will also need to work out of you can lock money into a long-term deal. Bonds, for instance, may be locked away for 30 years or more. Do not lock anything away that you may need next year. Property is another investment that may be difficult to liquidate quickly without losing a lot of money. All these considerations need to go into your investment plan.


The Stock Market

This is what most people consider when they think of Investing. All the brokers on Wall Street are making millions with the clicking of their fingers. Companies that float on the stock exchange divide their business into shares they sell for a profit. You are essentially buying a part of that company when you buy a share. That is why you need to be very careful about how you invest here. It is very easy to invest in something that does not align with your views. So there is a reputational dimension you need to consider. The stock market is fickle, too, things go up and down, and you need to be wary. Think is always about dividends. Dividends are payments you receive for owning part of the company, and these can be very lucrative if you have enough shares.

Property

You can invest in property as a business. You can even buy your own home through your business, which is a great avenue to go down. Property can be a very lucrative investment, and you can buy to let or buy to sell on. People all need somewhere to live, and the cost of houses has been increasing drastically over the past few decades. When it comes to homes, you can renovate and change the interior. You can expand the homes by adding an extension; you can even build new bespoke homes. If this is something that interests you, and your business is not a building company, then you need help. A site such as ArchiPro can make it easy to find the builders you need to create great homes.

Bonds

Bonds are another great form of investment. There are Government and Corporate bonds, and like the stock market, if you are going to buy corporate bonds, you need to check that there are no reputational issues or conflicts of interest. Corporate bonds are far more lucrative than Government bonds but are the riskier of the two options. You can choose a set amount of time that the organization holds the bond, and during the time the organization holds the bonds, you receive payouts knowns as coupons.

Three Methods To Help You Keep track of Business Finances

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StrategyDriven Managing Your Finances Article |Keep track of business finances|Three Methods To Help You Keep track of Business FinancesIn business, it’s easy to make mistakes with money. Even if you try your best to avoid risk and make up for mistakes you’ve made in the past, you can still get caught in money traps from time to time. And that’s why it’s important to make a real business budget that can be changed.

Many businesses don’t make this choice, but it can make a huge difference in how they handle their money. But this post is here to help you with that! The more you know now about how your cash flow can change and how to deal with that, the better your business will do in the future.

Look At Fixed Costs And Changing Ones

Every business has fixed costs and variable costs. That’s just how the world works. The important thing is to separate the two groups. What will cost you the same amount every time? And what costs will only happen once in a while? Sit down and think about these differences right now, and write down any costs you can think of.

Most of the time, these costs can overlap in some places. For example, the cost of hiring a new employee is a variable cost, but the cost of running payroll is a fixed cost. You still need to make sure you know which is which, because you need to set aside money each month for them. You need to make sure you make considerations for investments too, such as investing in Affordacool Swamp Coolers.


Write Down Your Goals

What do you want to be able to do with your business? Because if you know what you want your company or product line to do, you can make your budget more flexible. You can use your money and resources much more effectively and check off goals as you go.

So write down everything you want your business to do, because you’ll need money to make it happen. Include both short-term and long-term goals here, like things you might be able to do in a month and things you want to work up to over a few years. Write down these goals as clearly as you can, because they need to be specific for the budget to be as clear as possible.

Look At Your Finances Once A Month

So, once the first plan is done, put it to the test. Use it for a month to see how it affects your cash flow, then come back after a month. What did work? What didn’t work so well? What seemed like a good idea at the time, but is now obvious to need more work? Here is your chance to answer these and other questions.

What does it mean for next month if your bills were higher than you expected or you didn’t get as much business as you thought you would? Every 30 days or so, take the time to tweak your budget, and it will be much easier to reach the financial goals you set.

Making a budget for a small business is going to be hard, but it doesn’t have to be as hard as you think. In fact, many small business owners don’t do it because they think it’s too hard, which can only cause them more problems. So, before you really start your business, make sure you have this financial plan written down.

How To Enhance Your Business’s Finance Department

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StrategyDriven Managing Your Finances Article | How To Enhance Your Business's Finance Department

Finance is the backbone of any business. Without good financial planning and management, a company can quickly find itself in trouble. As such, ensuring that your business’s finance department is up to par is important. Here are the top ways to enhance your company’s finance department:

Implement Financial Software

Financial software help streamline many of the tasks performed by your finance department. This frees your employees so they can focus on more strategic tasks.

The right software solution can automate tasks such as bookkeeping, invoicing, and tracking payments. This will help improve your finance department’s efficiency and allow your employees to work more effectively.

You can use different software and templates for your business. For example, for bookkeeping, you can use FreshBooks, and for invoicing, you can use Zoho Invoice.

Hire Qualified Accountants

Good and experienced accountants are worth their weight in gold. They can help keep your financial records in order and offer advice on improving your company’s financial health.

When hiring an accountant, be sure to look for someone who is qualified and has experience in the finance department. You should also ensure they are a good fit for your company culture.

You can engage with finance & accounting recruiters to help you find the right candidate for your business. They will be able able to identify qualified candidates that match your specific needs.

Develop Strong Internal Controls

Strong internal controls are essential for preventing and detecting errors or fraud in your company’s financial transactions. They also help to ensure that your financial statements are accurate.

There are many different types of internal controls, but some common ones include segregation of duties, employee background checks, and physical security measures. Others include authorization requirements and independent audits.

For effective internal controls, you should customize them to fit the specific needs of your business. You should also do regular reviews to ensure they are still relevant and effective.


Develop Policies And Procedures

Policies and procedures are important for ensuring that your finance department runs smoothly. They can help to standardize processes and improve communication between employees. Some common finance policies and procedures include expense reimbursement, Accounts Receivable (A/R) management, and Accounts Payable (A/P) management.

Developing policies and procedures specific to your company’s needs is important. You can develop policies and procedures by yourself or with the help of a professional. If you choose to do it yourself, many templates and resources are available online.

Good Remuneration And Benefits

It’s important to offer good remuneration and benefits to your finance employees. This will help to attract and retain good talent. Some common benefits you can offer include health insurance, retirement plans, and paid time off.

Remuneration is not just about money but also about recognition and appreciation. Show your employees that you value their work and contribution to the company. This can be easily done through things like bonuses, promotions, and awards.

Foster Growth And Development

Ensure to provide opportunities for your finance employees to grow and develop in their careers. This can be done through training, mentorship, and educational opportunities. Conferences and seminars are also great ways to encourage professional development.

Encourage a culture of learning in your company and provide opportunities for employees to share their knowledge with others. This will help to create a strong team of finance professionals that are always learning and growing.

Encourage Teamwork

Teamwork is a key ingredient for the success of any finance department. It’s expedient to foster an environment where employees can work together effectively. This can be done through team-building exercises, regular meetings, and communication tools.

Technology can also help to facilitate teamwork. Many different software programs can help employees to collaborate and communicate with each other.

Provide A Healthy Work-Life Balance

It’s important to provide a healthy work-life balance for your finance employees. This means offering flexible work hours, telecommuting options, and childcare assistance. Other benefits that can help to promote a healthy work-life balance include fitness programs and wellness initiatives.

A healthy work-life balance, therefore, becomes essential for employee productivity and satisfaction. It can also help to reduce turnover in your department.

Finance is a critical part of any business. Following these tips can enhance your company’s finance department and ensure it runs smoothly. These tips will help you to streamline many of the tasks performed by your finance department, freeing up your department so they can focus on more strategic tasks.

The Pros And Cons Of Taking Out A Business Loan

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StrategyDriven Online Marketing and Website Development Article |Business Loan|The Pros And Cons Of Taking Out A Business LoanBusinesses are the driving force behind economic growth. They create jobs, increase productivity and innovation, and drive demand for goods and services. Aside from that, they’re the perfect instruments for community development. In fact, it’s been estimated that every dollar invested in small businesses gives back 67 cents to the local economy.

With the global economy in its current state, it’s easy to see why many business owners are looking at business loans to get their companies off the ground. But what are the pros and cons of taking out a business loan? This article will explore some of these advantages and disadvantages.

What Are Business Loans?

Business loans are funding that allows businesses to pay for large-scale purchases or investments. They’re usually short-term loans designed to help businesses grow and expand. Business loan rates are a core part of the business loan process. They vary depending on the type of loan and lender you choose. They also vary across countries, but you can compare them from one lender to another. See current business loan rates in Australia to learn how the comparison works.

Pros Of Taking Out Business Loans

Business loans are an excellent way to get the financing your business needs. Here are some of the top pros:

1. Keep Cash Flow Healthy

If you’re a business owner, you know one of the most important things is keeping cash flow healthy. If you don’t have enough money coming in, you won’t be able to pay your employees or make payroll. It’s also crucial that you keep the line of credit open so that if an emergency comes up, you have access to additional funds. If you have a business loan with a low-interest rate and no prepayment penalty, it’ll be easy to use this money without worrying about regret.

2. Easy To Get Approved

If you want a business loan but don’t have good credit or any collateral to secure the loan, it can be challenging to find an institution willing to lend you one. A small business loan with no credit check can help solve this problem. It allows anyone turned down by other lenders, usually because of poor credit history or lack of collateral options, to access credit. The lender will not check your credit history or take any other type of security from you to ensure you repay the loan.

3. Quick Turnaround

You can apply for a business loan in minutes, and the approval process is usually swift. In fact, many businesses will receive their funding within 24 hours of applying. Thus, it doesn’t take long to get approved and get the funds in your account. This means that if there’s something urgent that needs to be done, such as paying for supplies or equipment for a new project or an upcoming event, you won’t have to wait around for weeks or months. This time benefit can help your business scale.


Cons Of Taking Out Business Loans

There are some disadvantages to taking out a business loan, which you should consider before making a decision. Some of these include:

1. Interest Rates

When taking out a loan, you’ll deal with fees (called interest) related to issuing and receiving the funds. These fees can range from a few hundred to thousands of dollars. The interest depends on the company offering them and how much money they lend. For example, banks may provide loans at lower interest rates because they offer more security than other companies. If your business isn’t very profitable yet, it may be worth looking into loans from smaller lenders who can give you better deals on interest rates.

2. You’ll Pay Back

No banks or financial institutions will give you a loan and leave you alone. In other words, you’ll need to pay back. You may get a loan with a very low-interest rate, but it could be difficult to pay back if your business isn’t doing well. You should also consider how much money you’ll have left over after paying back the loan. If you can’t afford to make payments each month, it might not be worth taking out a loan in the first place.

3. Credit Requirements

Another disadvantage is that you may not get approved for a business loan if you have bad credit. Bad credit refers to credit scores of 580 or lower on a 300–850 scale. It usually means you’ve had a few missed payments in your history. Lenders will check your business credit history and look at how much debt you have. They also will look at your payment history. If you don’t have good credit or if you’ve been delinquent on payments, lenders may deny your application for a business loan.

Conclusion

Business loans are an invaluable tool for any business owner who wants to grow their company. They allow you to get the funding you need for your business to succeed without the hassle of trying to find investors or partners. So if you’re considering applying for a business loan, take some time to research the pros and cons. Once you know these, choose a lender that captures your business interest.