Many owners look at the total on their phone bill, see that it is roughly what they expected, and move on. I understand why. But the bill is the only place the carrier shows you exactly what you are paying for, and a few minutes with it can catch charges for lines you canceled, promotions that quietly ended and fees nobody explained. This is how I read one, and what I question first.
Start with the account summary
Before you look at a single line item, check the top of the bill. Confirm the account number, the billing period and the due date. Compare the previous balance with the payments listed. A payment can post late or to the wrong account, which is how a business that paid on time ends up with a late notice. If a payment is missing, call before the due date, not after.
Then compare this month's total with the last three months. A small change is normal. A jump with no change on your end is the first thing to question.
Match every line to something you bought
Next, go line by line and match each charge to something on your contract or order. You should be able to name the service behind every line: a monthly fee for each user or number, a device payment, or a feature such as voicemail to email, call recording or an extra fax line. Keep a short list of what you signed up for, with quantities, and compare it to the bill.
Count the numbers too. If the bill shows more lines than you have people or locations, find out which ones are still active. Former employees' extensions, old fax lines and test numbers are common leftovers. If a line appears that you do not recognize, that is not a detail to skip. It is the first thing to question.
Taxes and fees are not the same thing
Many owners treat everything below the service charge as "taxes," but the bill usually contains several different kinds of charges. Government taxes are set by federal, state and local law, not by your carrier. You generally cannot negotiate them.
Fees are a different category. Some fees are charges the government requires carriers to collect and pass along. Others are charges the carrier sets on its own, often with labels such as "regulatory recovery," "administrative" or "activation." Carrier-set fees differ from one company to another, and they can often be reviewed at renewal. The labels also change from bill to bill, so do not assume a charge is required just because it looks official.
When a fee is unclear, ask for a written breakdown that separates government taxes, government-required charges and carrier-set charges. A reasonable provider will give you that answer. If they cannot, that is useful information too.
Charges that deserve a closer look
- Expired promotions. A discount that lasted a year often jumps back to full price with little warning. Check the start and end date of every credit.
- Usage charges. Overage fees, long-distance minutes and international calls can appear on plans that once included them. If a usage line shows up, ask whether the plan changed.
- Equipment still billed. If you returned a phone or router, confirm the device charge stopped. Leased equipment is a frequent source of charges after a cancellation.
- Cancellation and termination fees. If you asked to cancel a line, check whether it is still active and whether a fee applies.
- Late and reinstatement fees. If a payment was misapplied, these fees should be reversed once the payment is confirmed.
What I question, in order
When I review a bill, I work through the same short list. First, anything I do not recognize. Second, any increase from last month that I cannot tie to a change we made. Third, any promotion that has ended or is about to end. Fourth, any fee I cannot classify as a tax, a government charge or a carrier charge. Last, any line that is still billed after someone asked to cancel it.
Keep this order, since the first three tend to matter most.
How to ask so you get an answer
Have the account number, the billing period and the exact line item ready before you call or write. Ask a specific question. "Why did the administrative fee increase this month?" works far better than "Why is my bill higher?" Ask whether a credit can be applied, and ask for written confirmation. Note the date, the name of the person you spoke with and any reference number they give you.
If the answer is "that is just how the plan works," ask which section of the contract says so. You have a right to know what you agreed to, and the answer often changes the conversation.
Make it a routine
Set aside ten minutes each time a bill arrives. Enter the total and the number of lines into a simple spreadsheet so you can see the trend at a glance. Review the full contract before it renews, not after. Your phone system is one of the few technology costs that touches customers every day, so it is worth knowing what you are paying for.
If you are weighing a change, my piece on Six Questions Before Switching Phone Systems covers what to ask a new provider, and Keep Your Number When You Switch Providers explains how to avoid losing your number in the move. If you would rather have someone else sort through the bill, DirecTech Connect works with businesses across Middle Tennessee on phone systems and can look at one with you.
Danielle Lemons is Vice President of Operations at DirecTech Connect, a Nashville provider of business phone systems, managed IT services, websites and digital marketing. More about Danielle.
Read more of Danielle’s writing, or see her profile at DirecTech Connect.
