Cell phones, PDAs and similar devices are in everyone’s pocket these days. And chances are they’re draining excess dollars from your company’s coffers. Many companies are finding that when you add up the charges for all those wireless “must-haves” they’re spending thousands per month — with little idea of where all the money is going.

Here’s a three-step plan to “self-audit” your company’s own wireless charges to make sure you aren’t cutting checks for a penny more than you should be.

1. Consolidate. Allowing employees to use multiple carriers, giving phones to everyone in a given department, adding data plans to all phones regardless of whether the users need them — these are nice benefits for workers. But it makes your billing charges more complicated. And that makes it easier for overcharges and other errors to sneak through. Ask managers to look at who in their department needs these devices, and exactly what services they need. That move alone could slash your total wireless spending.
2. Set clear policies on usage. If a phone is for work use, it should technically be only for work use. (IRS considers non-work use of an employer-provided phone a taxable benefit.) It’s a rule a lot of employees — and employers — ignore. But it can have costly consequences. Not only will you be paying for more minutes in total. If auditors catch personal use being essentially subsidized by your company, it could become a major tax headache too.
3. Centralize. If multiple managers can sign off on phone and PDA expenses within their departments, you may not have a real idea of how much your company is spending. It also means you’re probably not getting the kind of volume discounts you’re entitled to. Having one central person go over all the bills also gives you a chance to see if there are any duplicate charges or unused services that your company is being invoiced for.

How do you manage payments for your company’s phone and wireless charges? Share your best practices in the comments.

Tags: A/P, Cost cutting, Fringe benefits, Internal controls, Overcharges, Payroll, Self-audit, Telecomunications