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Are Personal Phone Calls Costing You Money?
 Small
businesses in the UK are spending around
£400 million a year on personal calls made
by employees on company phones and mobiles
according to new research by telecom expense
specialists Aurora Kendrick James.
This huge cost not only undermines the
profitability of British businesses, it also
puts them at risk of inadvertently breaking
tax regulations by mistakenly reclaiming VAT
on the total mobile phone bill - rather than
reclaiming just the business element. This
simple error means that potentially some
£150,000 is being incorrectly claimed from
HM Revenue and Customs (HMRC) every day.
The mobile phone has become the first choice
business tool to maintain contact and retain
control of work while out of the office.
Convenience and availability means that
mobile phone use - even while sitting at
their desk - has become the norm for many
people. The devices themselves provide
access to key information such as contacts,
email, and web-based services and as a
result can be used for every aspect of
modern business and personal lifestyle.
According to Aurora Kendrick James, few
businesses actively monitor and manage
personal usage, which means they are losing
control of the cost and usage of the tool
that should be delivering improved control
and productivity for its workers.
So what can businesses do to take control of
company mobile costs and usage? Matt
Atkinson, managing director at Aurora
Kendrick James stresses the importance of
implementing a company policy and publishing
guidelines on mobile phone usage to educate
employees on the potential costs and the
importance of mobile expense management by
individuals. He has highlighted four simple
steps to improve efficiency, cut business
costs and reduce fraud:
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Review and analyse - assess the current
situation of the company's mobile estate
and determine the potential cost to the
business.
-
Collate and log - create an accurate
inventory of users against which costs and
usage can be monitored.
-
Control and guidance - agree a fair company
usage policy and decide whether the aim is
to control and reduce personal usage or
actually reclaim costs from users.
-
Educate and publish - educate users on their
mobile usage and costs, reinforce the policy
with monthly usage statements.
It is important to remember though, that
with 4million small businesses in the UK;
this means that the average business is
still only spending 25 pence a day on
personal calls. Would you pay 25p a day to
keep your employees happy and in touch with
their families? The vast majority of
businesses would. The key is to prevent
abuse of phone services, and ensure that
employees use them sensibly.
Visit our Internet and Technology portal for
more information on communications and
mobile phones in business.
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