Tracking an organization’s utility expenses is an essential part of an audit. Utility bill management, also sometimes referred to as utility expense management, is the process of conducting complete and comprehensive utility expense audits, which includes a variety of functions like bill error identification and correction before it is processed.
Utility expense tracking and management are crucial to ensure the energy efficiency of an organization. The process does not only help in the timely payment of bills. It also ensures that the correct amount is paid in terms of the utility expenses for a specific period. Amongst several other challenging tasks for the AP departments, especially of multi-site organizations, utility expense management is one of the critical tasks.
The process also helps organizations identify areas of improvement regarding energy and water consumption. This helps reduce utility expenses and make the firm more energy efficient over time. There are numerous benefits of proper and synchronized utility expense management for a firm. In the next part of this article, we have discussed all you need to know about utility bill management.
The Key Benefits Of Utility Bill Management
Multiple disparate invoices are received by an organization’s accounts department every month. These come from different vendors and service providers, and the task of clearing these bills is more than just paying the due amount. The exemplary process of bill evaluation and audit is necessary because these involve complex payables, and with proactive audit and analysis of every invoice, an organization can make considerable savings.
Utility expense management is one of the critical areas. When dealt with, proper attention and expertise can help uncover several unnecessary expenses and areas where an organization can reduce its expenditure. Some of the critical benefits of utility expenses management include:
- It helps a firm save a lot of money through bill error identification and resolution, reduce late payment charges, identify and resolve late-arriving bill issues, detect any improper or unjustified meter readings, and identify and implement potential energy savings opportunities.
- It helps in making the process of utility bill audit and payment much easier, faster and more systematic. From consolidated summary statements for multiple sites and invoices to seamless integration with a business’s existing accounting system, as well as bill audit and resolution of disputes, all of it becomes much easier with proper utility expense management.
- Firms that choose to use a service provider or tool-based application for utility expenses management can enjoy the extra benefit of getting valuable insights and data, all through a single channel or platform. With professional utility expenses management, you can get site-by-site consumption as well as cost details and reports. This helps identify high-cost facilities anywhere across the functional areas of the firm.
Every firm must have an established and systematic utility bill management system to reduce energy costs and expenses, make savings and make the process of bill audits and payments more accessible and more effective.