BlogHow A Finance Team Uses TEM for Expanded Business Insights

How A Finance Team Uses TEM for Expanded Business Insights

July 27, 2017, Expense Management

By Scott Davis

Communication services rank in the top five expenses for most enterprises. With the explosion in mobility usage, data and unified communications, finance executives are challenged to balance these rising costs while recognizing the organization’s critical need for a reliable, efficient communications network. Given the impact of communications on the overall budget, transparency and accountability are a must. The answer lies in TEM (Telecom Expense Management), which is purpose-built to increase data visibility, improve process and ultimately aid the finance team in making optimization decisions.

I mentioned in a past blog how Finance has “become more than ever, deeply intertwined with the CIO/VP IT role as they address how the organization manages technology demands – balancing the exploding costs, complexity and risks.” To accomplish this, the finance team must have greater access and control of the IT spend. TEM solutions give Finance the ability to:

  • Improve budgeting and forecasting via trend analysis
  • Use fact-based justification for increases or decreases in spend
  • Easily manage costs allocation and chargebacks based on actual consumption
  • Reduce organizational risk and maintain compliance
  • Demonstrate ROI and effectiveness to the organization

What Happens When Finance Aligns More Closely With IT?

There is often a natural push and pull between IT and Finance. But these two can work better together for the greater good. TEM arms finance executives with the most holistic view of the entire communications spend. When integrated with ERP, ITFM, budgeting and other systems, it delivers un-paralleled transparency for improving control, decisions and accountability.

We’ve seen the organizational impact when decision making regarding IT spend becomes more fact-based. When finance knows all the right data points and decisions are made for the right reasons, it creates greater cohesion with IT. That may sound too good to be true but justifying increases or decreases in IT spend can create a unified mindset where Finance and IT work together to align, define and create a common set of clear processes.

TEM Helps Finance Reduce Risk, Maintain Compliance

Less risk and more compliance – that’s music to the ears of any finance executive. TEM increases the accuracy in expense tracking and reporting. It is reported that the average Fortune 500 Company processes more than 15,000 telecom-related bills in a year while a mid-market company typically processes 3,000 per year. One consistent error, fraud or unauthorized charge in those bills could cost a company millions. TEM supports compliance by automating SOX reporting and storing of telecom expense data. It also an effective way to ensure your employees adhere to specific regulations and corporate policy.

Want to learn more?  Download this brochure:  Simplified Communications Management for Finance

Scott Davis talks TEM in Universities