01 Mar Identify Vendor/Service Provider Billing Errors to Curb Losses in Your Business
Every business owner looks for different ways to reduce spending without impacting the quality of their products and the effectiveness of their services. One area that business owners often tend to overlook is vendor billing. While they do negotiate prices and opt for services from vendors that are able to offer them a lower pricing, they don’t diligently check the bills for errors, and this can be a big mistake.
The slightest over-charge can easily add up to a significantly high amount over time. Regardless of the processes you follow in your business billing, it’s a folly to assume that just because all vendor billing nowadays is computerised, it is entirely error-free.
Companies of any size can make mistakes and even a single missed keystroke can result in a vendor billing error due to which your business gets overcharged by the vendor. It’s not uncommon for some billing errors to go unnoticed for months or even years, and that can result in millions of dollars in losses for your company.
Types of vendor billing errors
Phone and internet lines, cable TV as well as a range of communication services are the lifeline of most modern business. However, there are certain common utility and telecom billing errors that you need to watch out for:
There are times when businesses get charged incorrect rates for the services provided. This generally occurs when the initial offers/discounts aren’t honoured or they fail to apply them upon renewal of the service. This could be due to misleading terms in the agreement/contract that had disclaimers or set limitations or it could be the result of an oversight from the provider’s end.
Billing beyond the service cancellation date
Sometimes, billing companies might just continue to send invoices with monthly charges even when you have requested a cancellation of the service. This may continue to take place for a number of years post-cancellation or even after you have moved to a new location.
Charges for services not requested
This may sound like impossibility, but it’s not as rare as it seems. Services such as network monitoring or internet faxing may be added to your account and you continue paying additional charges for these services you never requested for.
Third Party charges
This has to be one of the most frustrating aspects of your telecom invoice. These fees show up in cases where the telecom vendor is only acting as the billing agent. The fees they charge are generally for services your company doesn’t utilize. These situations are referred to as cramming/slamming fees. Unfortunately, in most cases, these fees don’t get questioned at all as they are overlooked; but you end up spending a large amount of money on account of these billing inconsistencies.
Errors caused by utility companies
Just as with internet, cable, and telecom, a number of vendor billing errors can surface in your utility bills. Distributors are responsible for taking the readings from meters and also for sending this data to the respective retailer, who manages your account and issues the bills. If they read even a single digit incorrectly that can send your and water and electricity bills skyrocketing. And even if you are considering disputing the bill, you are still required to pay it first to avoid disconnection of your utilities.
The best way to avoid these errors and being overcharged by vendors is to make it a point to monitor your billing statement and usage history each month. This will help you spot suspicious or high charge immediately and you can contact the vendor to get it resolved.
For effective and sustainable cost reductions & efficiencies that will increase your bottom line, contact the experts at Benchmark Cost Solutions at this number – 1300 170 585. If you prefer, you can also request a call back or write to us at this email address.
Thanks for reading,
Benchmark Cost Solutions Team
1300 170 585