What is Telecom Expense Management (TEM)? Controlling & Optimizing Costs

Every business, no matter how big or small, needs to manage its money wisely. A big part of this is expense management, which means keeping track of costs, reviewing bills, and finding ways to cut spending. This includes things like travel costs, buying equipment, or other daily expenses. When done right, expense management keeps a company’s finances healthy and helps it grow.

Good expense management leads to smarter decisions, clear visibility into spending, and financial goals that make sense. But without a proper system, businesses can easily overspend, miss chances to save, and struggle to stay on budget. According to a report by Aberdeen, companies that use automated systems to manage expenses see 46% lower costs to process an expense report compared to those without a system in place. Without this kind of tool, companies risk wasting money and creating financial problems that could hurt their growth.

Today, businesses need an expense management solution that fits their needs—one that grows with them, works well with their processes, and adapts to changes. One area where managing costs is especially important is telecom and technology expenses.

What Are Telecom Expenses?

Telecom expenses, also called technology expenses, are the costs businesses pay for things like phone systems, internet, mobile devices, data plans, and communication tools. They can also include the costs of IT services, cloud storage, and software that keep teams connected and work running smoothly. Since businesses today rely so much on technology, these costs have become a large part of their budgets.

Why is It Important to Manage Telecom Expenses?

If you don’t keep an eye on these expenses, they can get out of control fast. For example, a business might pay for phone lines it no longer uses or keep paying for old services it doesn’t need anymore. Errors in bills or unnecessary charges can also add up if no one checks. Without proper management, you can easily lose track of spending and miss chances to save money.

That’s why businesses need telecom expense management (TEM). A TEM system helps track and control these costs, get rid of waste, and make sure you’re only paying for what you really need. It’s not just about saving money—it also helps businesses stay organized and make smarter choices.

Features of Telecom Expense Management Software

Expense Tracking and Checking

The system keeps a record of all costs and matches bills to agreements to spot mistakes or overcharges.

Managing Inventory

It tracks all your telecom tools, like phones and internet services, so you’re not paying for stuff you don’t use.

Cost Allocation

It organizes costs by department or project so everyone knows what they’re spending, and it’s easier to stick to budgets.

Contract Management

It helps you keep track of contracts, like when they are ending, and helps you negotiate better deals.

Reports and Insights

The software shows you where your money is going and gives ideas for how to save more through clear reports and data.

Automated Payments

It simplifies bill payments so nothing is late, which saves time and avoids extra fees.

6 Best Telecom Expense Management Solutions

Here are six popular telecom expense management (TEM) tools that can help businesses save money and manage their telecom costs more effectively.

1. Tangoe

Tangoe is a powerful TEM tool with features that help track telecom devices, manage bills, and check contracts. It’s designed for big companies that have a lot of telecom expenses to handle. While it costs more than other options, it’s great for businesses with complex needs because it offers advanced tools and customization.

2. Calero-MDSL

Calero-MDSL works well for all types of businesses, from small startups to large companies. It’s especially helpful for managing mobile devices and keeping an updated inventory of telecom services. Its reports give detailed insights into spending, making it a good choice for businesses that want to grow. Costs depend on your company’s size and what features you need.

3. Sakon

Sakon is simple to use and offers tools to manage mobile devices, cloud services, and software subscriptions. It’s good for medium and large businesses because it works well with current IT systems and adapts to different needs. The pricing is flexible and depends on the features you choose.

4. Edenred Pay

This is a great option for small to medium businesses that want easy expense tracking. Edenred Pay focuses on simplifying payments and spotting billing errors, saving time and money. It’s also one of the more affordable TEM solutions, perfect for businesses just starting with TEM software.

5. Cimpl by Upland

Cimpl is great for medium and large companies. It helps track telecom tools, manage contracts, and analyze usage. It even predicts future costs, which can be helpful for planning budgets. While it may cost more, it’s worth it for companies looking for deep insights and advanced tracking tools.

6. Cass Information Systems

Cass is ideal for big businesses that deal with a high number of telecom services. It’s known for its auditing tools, which help find and fix costly billing errors. It’s especially popular with industries like retail, healthcare, and logistics. While it’s one of the more expensive options, it’s excellent for large businesses that want to control their spending.

Why Do Businesses Need a Telecom Expense Management System?

Handling telecom expenses might not seem hard, but without a proper system, costs can quickly get out of hand. A Telecom Expense Management (TEM) system helps businesses stay organized, reduces wasteful spending, and gives a clear view of where their money is going.

Benefits of Using a TEM System

Save Money

A TEM system helps you find and cut unnecessary costs. It flags unused devices, overcharging, and expensive contracts, saving you money by helping you only pay for what you actually need.

Better Budget Management

With a TEM system, you can clearly see how much you’re spending on telecom services. This helps you plan your budget and avoid overspending.

Work Faster and Smarter

A TEM system automates tasks like paying bills and checking contracts. This saves your team time and lets them focus on other important work.

Catch Billing Errors

Telecom bills often have hidden fees or mistakes. A TEM system reviews these bills and finds errors, keeping you from paying more than you should.

Stay Organized

It’s easy to lose track of phones, internet services, or plans your business uses. A TEM system creates an inventory so you know what you have and what you don’t need anymore.

Improves Team Productivity

With a TEM system in place, your teams deal with fewer interruptions caused by telecom issues. This means smoother workflows and quicker decision-making.

Grow Without Worry

TEM systems can grow with your business. Whether you’re a small company or a big one, it helps manage your telecom needs while keeping costs under control.

How to Pick the Right Telecom Expense Management Tool

Finding the right telecom expense management (TEM) tool starts with knowing what your business needs. TEM tools help you save money, stay organized, and avoid paying for things you don’t use. They are valuable for businesses of any size.

Think about what you need help with. Are you a small business looking for something simple and affordable? Or are you running a larger company that needs more advanced features like detailed reports? Also, look at your current expenses and decide how much you’re comfortable spending on a TEM tool.

Every TEM tool offers different features, so compare what they provide, how much they cost, and whether they work well with your existing setup. Whether you need to manage mobile devices, internet plans, or software subscriptions, there’s a solution that can match your needs.

With the right TEM tool, you can take control of your telecom costs, work more efficiently, and focus on growing your business. Make a choice that fits your business, and you’ll save time, money, and a lot of effort in the long run.