What Are Contingency Based Audits?

By April 16, 2019 Audits

The telecom expense management industry is expected to grow in value to $3.43 billion in 2019. This is because telecom accounting is a complicated process of managing service contracts and ensuring that the service arrangement you’ve negotiated with your service provider isn’t a cookie-cutter, off the shelf arrangement full of services you will never use. Many accounting departments are not equipped to properly assess these services and charges, and that’s where a third party auditing service can help save your organization hundreds of thousands of dollars by managing and overseeing your telecom operations. The boon for your organization is that many companies that provide audit services do so in the form of contingency based audits. Let’s look at the audit process and see how your organization can benefit from contingency based services.  

Internal Audits Protect You In the Event of an External Audit

The goal of performing internal audits is to protect the integrity of your organization’s financial information. Operating in the modern economy where investors are key to the early growth of businesses and ongoing investor relations are vital to a company’s long-term success, the veracity of your organization’s financial data reporting is paramount. In the telecom expense management industry, the goal is to help organizations that don’t specialize in telecom management to understand and control both their internal telecom practices and to manage their external relationships with service providers.

Telecom Expense Management

A system of ensuring that employees’ telecom related expenses are being properly reported and reimbursed goes a long way in providing your accounting department peace of mind when it comes to tax season and reporting your overall profit and losses. In the event of an external audit, having a third party that specializes in the management and oversight of telecom expenses means you’ve got the proper documentation and reporting to stand up to any scrutiny.

Telecom Invoice Management

Just as important as your internal practices is ensuring your relationship with telecom service providers is inline with your business needs. A third-party telecom audit partner can match your business practices to the services you’re paying for and determine if there’s any opportunity to eliminate unused services from your billing. They then negotiate with service providers to eliminate and in many cases even recoup past overpayments.

Contingent on Successful Auditing Practices

With the demand for telecom expense management having grown exponentially in the last few years, the field has become highly competitive, and service providers have had to become innovative in order to stand out from the crowd. One strategy many have adopted is to offer clients contingency based audits – that is, they will perform an initial audit of a client’s telecom accounting practices for free, and only negotiate fees based on the savings they are able to identify and negotiate with a client’s telecom service provider.  

Identifying Your Opportunities, Converting Expenses into Savings

Businesses seeking contingency based audits in San Antonio have to look no further than TelResource. With thirty years of telecom auditing experience behind them, TelResource provides no risk contingency based audits with no upfront costs. Our only concern is to save your organization money in the long-term, so our telecom expense management services are designed to first ensure you’re not leaving money on the table unnecessarily when it comes to your existing telecom service contracts.

Once we’ve identified opportunities to save and renegotiated your accounts with service providers, we also offer ongoing telecom expense management to ensure proper accounting procedures and oversight of your telecom services internally. Bottom line, you can’t afford not to reach out to our team to see how we can save you money in the long-term and take the burden of telecom expense management off your shoulders.

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