The Utility Maze
Utility provider billing errors are as inevitable as the bills themselves. The most common error is billing at an incorrect rate. Typically, utilities account for more than 15% of an organizations monthly overhead expense and subtle rate changes often go unnoticed by the accounting team. Over time this can have a substantial financial impact on a business’s bottom line. To eliminate the risk of costly errors and over-spending, many companies are choosing to implement Utility Expense Management (UEM) programs. Whether these are outsourced solutions or new implementation brought in-house, it allows employees to return their focus onto what the business does best. Companies today are making major strides towards streamlining and automating their business practices in order to recognize areas for cost-cutting.
The utility maze is not only unwieldy but can also be confusing. For the busy facilities/utility department, thoroughly analyzing utility bills for location usage comparisons, rate changes and other anomalies is both difficult and time-consuming. The real value in implementing a UEM strategy is the third set of eyes focused on your invoices who are trained to recognize cash saving opportunities. Your business is backed by a team of experts who not only are trained to identify provider issues but who have the professional skillset to resolve them on your behalf and provide executive management with the reports they need to make crucial decisions. It provides an unparalleled approach to utility bill analysis that helps your business maximize value from your utility services going forward.
RadiusPoint© manages the process from audit to payment, utilizing our ExpenseLogic™ software. ExpenseLogic™ sets parameters, notes contracted rates and looks for exceptions with every bill-down to the line item.
Below are some areas where most issues are identified and can have a positive impact on your NOI when resolved.
- Usage and Cost Comparisons: Year over Year, Month over Month, Actual Use vs. Budget, these comparisons can help identify leaks and other inefficiencies in the system.
- Service Dates Analyzed for Gaps or Overlaps rate changes, analysis of any/all credits and/or debits, erroneous charges, estimated bills and much more.
With ExpenseLogic™ used as an in-house solution, in addition to exposing billing errors, all data is captured, stored and easily retrieved to provide your business with a budget and projected rate increases based on accurate usage and rate analysis. This data can also be used for cost avoidance, greenhouse tracking and reporting to help you meet with regulatory requirements and confirm energy savings as well.
If outsourcing is preferred, RadiusPoint’s managed services can provide management with the reporting and analytics needed to make strategic decisions. The benefits of outsourcing UEM include: reducing internal costs associated with paying invoices, identifying potential utility expense savings while eliminating billing errors and late fees. When utility issues are identified, RadiusPoint© works directly with the utility provider to resolution. All of this leads to improving efficiency by allocating internal resources to other initiatives. RadiusPoint© is in business to eliminate utility bill confusion and provide managers and executive teams with the information and visibility they need to make informed decisions.
Isn’t it time your business strategy included a strong solution which analyzes your utility spending, improves reporting and accountability structure and provides visibility into how you can maximize dollar values from your utility services going forward?