5 Myths About TEM

Technology Expense Management (TEM) is a growing part of almost every industry. It’s the method of partnering with a third part to go over your technology spending and investment to make sure the money spent is working positively. A lot of companies quickly find that TEM can point out inefficient spending, and TEM solutions help them find better ways to do the same old thing. It sounds promising, but technology changes are always scary.

Often, the people in charge don’t have a tech background, and the ensuing guesswork is nerve wracking. Let’s remove some of that stigma from TEM. When you know more about it, you can better assess what is right for your business. That’s why we should debunk these five common myths people believe about TEM.

It’s All About Software

Make no mistake. TEM software is a major part of the conversation, and when you work with an expense manager, you’re going to spend a fair effort finding good software solutions. But, there’s a lot more to the equation than finding a software suite and letting it run. If you analyze the acronym, TEM, the word software isn’t found, but management is. That’s the key to the whole thing. Working with an experienced, professional manager gives you the power of insight and experience. They can help you navigate the infinite landscape of modern technology to find only solutions that will net benefit your business. You’re investing in the person behind the technology. Software solutions will merely be one of the ways they help your business run more economically.

It Only Works for Some Industries

Sure, companies like Google and Facebook probably need dedicated technology expense teams. Local book shop owners are in a different world. As long as they have a cash register and a phone, they should be fine. This myth is pervasive, but it’s simply not true. Technology inundates every single industry on the planet. You can try to be a remote goat farmer, and you’re still going to have opportunities to improve your operation with new technology. Maybe tagging and tracking the goats could help you optimize feeding and migration patterns.

We might have gone a little deep into that random example, but the point is that there’s always a way to do things better. That’s the whole point of technology, and if you really want to run your business at its best, you need to keep up with the pace of tech. That’s expensive, but TEM can make sure that your expenses are giving you positive returns.

In-House Solutions Are Cheaper

If you only look at the cost and ignore the benefit, this myth feels true. Google Sheets is free, so why not track your expenses on a spreadsheet. You might be trading time for money, but if you have time to spare, this is an obvious win.

The problem with this line of thought is that it assumes TEM investment won’t grow your business. That’s one of the chief reasons to make the investment. They technology you procure should do more than improve efficiency and save on overhead. It should expand your capacity to reach customers or clients and expand your base. While TEM can and should save you money, it’s also supposed to make you money. A self-made spreadsheet won’t give you advanced analytics, revenue predictions, trend tracking or any number of advantages that are pretty standard in TEM software. Your spreadsheet is also conspicuously devoid of the experience you’re looking to tap when you partner with an experienced expense manager.

You’ll Have to Fire Someone

You already have an accountant, and they do a good job of tracking expenses. Hiring a TEM team would put someone else out of a job. However, TEM does not displace accountants or accounting departments. It enhances them. While your TEM solutions should empower your monetary tracking, it doesn’t file taxes for you. It doesn’t write the checks. It doesn’t report to shareholders or business partners.

Instead, TEM takes a closer look at the specific spending and return on your company’s technology. This is data that makes it easier for your accountant to do the job. Instead of removing them, you’re making their life easier.

It’s Just Too Complicated

Let’s be completely honest. TEM can get overwhelmingly complicated. When large operations invest in deep-data analytics, there’s a lot to track. If you’re not a billion-dollar enterprise, why bother with the trouble? Deploying software, absorbing downtime and training employees is a hassle.

The things is, TEM doesn’t have to be incredibly complicated. Sure, there are businesses that benefit from overwhelmingly deep dives into expense management, but smaller operations usually don’t have the same need. The point of partnering with an expense manager is to find a custom solution that is right for your business. That means you won’t waste money on tools you won’t use, you’ll get veteran guidance on deploying upgrades as smoothly as possible, and you’ll be making all of these changes from the framework of expecting positive returns on your investment.

Discover how much you can save with TEM solutions by answering four quick questions in the TEM calculator!

ABOUT THE AUTHOR: CHANTEL SOUMIS

Chantel Soumis brings over a decade of knowledge in workflow enhancement through the use of technology. Chantel studied marketing communications and business administration at Franklin University and proceeded to work in a fast, ambitious environment, assuring client delight in the healthcare and pharmaceutical industries. Passionate about project productivity and streamlining workflows through the use of technology, Chantel strives to inform organizations of Valicom’s advanced telecom expense management software and services by mastering communications and messaging while delivering helpful information and supporting resources.