How to Lower Your Business Phone Bill
It’s time to take a closer look at your business phone bill. Do you have charges for services you hardly use? Are there taxes or maintenance fees you didn’t realise you were paying? Business phone providers are getting creative when nickel and diming their customers. If you’re not sure what’s on your business phone bill, read on to discover how to make it easier to manage and lower your expenses. And while you’re at it, switch to VoIP.
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Lower Your Business Phone Bill: Hidden Fees
Many people see advertisements for hidden fees on their business phone bills. But these charges often include taxes, maintenance, and features that business owners rarely use. Business phone service providers can get quite creative in nickel and diming their customers. So how do you avoid them? Here are some tips to keep hidden fees to a minimum. Identify and eliminate hidden charges on your business phone bill.
Read and understand your contract carefully.
Then, do an audit to ensure you get the best deal.
One way to avoid hidden fees on your business phone bill is to avoid unnecessary services.
Long-distance and toll-free charges are standard in business phone services.
Ask your phone provider if they have free long-distance calls or if they charge for them separately.
If your company doesn’t want to pay for long-distance calls, look for options allowing you to send emails instead.
Then, consider the number of lines and users your company needs.
Many features are priced per user or line. Other hidden fees on your business phone bill include state and federal taxes. State governments charge businesses a gross receipts tax. These taxes aren’t required to be passed on to consumers, but telecom companies do. For example,
Verizon Wireless charges an annual fee not disclosed on its promotional materials. However, this fee is justified because the company subsidises phone and internet coverage for rural areas. By distributing the cost of these subsidies to their customers, they can recover their costs.
Lower Your Business Phone Bill: Tax Deductions
You can write off up to 15% of the cost of a mobile phone plan if you use it for business. This includes long-distance calls, roaming charges on business trips, and extra payments to secure business services. To claim these expenses, you must keep detailed usage logs and write down all business calls. This can help you track how much you spend on monthly business phone service. As a business owner, you may wonder if you can deduct your phone bill.
Business Use: To claim the deduction, you must demonstrate that the phone is used solely or primarily for business purposes. If you use the phone for personal and business purposes, you may only be able to claim the portion related to your business activities.
Expenses: The cost of purchasing a business phone and related expenses, such as monthly service fees and call charges, may be eligible for deduction. However, keeping detailed records and receipts to support your claim is essential.
Allowable Expenses: HM Revenue and Customs (HMRC) provides guidelines on allowable business expenses. You should consult their guidance or seek advice from a tax professional to determine if the expenses related to your business phone are eligible for deduction.
Capital Allowances: In some cases, the cost of a business phone may be considered a capital expense rather than a deductible expense. Capital expenses are typically subject to different tax treatments, such as being eligible for capital allowances over time. Again, it’s advisable to consult with a tax professional to understand how this applies to your specific situation.
Lower Your Business Phone Bill: Choose the Right Provider
You should consider several factors when choosing a provider for your business phone bill. It will help if you look for customer service hours and a reliable website. If you can, choose a local vendor. This is especially important if you conduct business late or on weekends. Ask trusted friends or family members for recommendations if you’re unfamiliar with the area. It’s always better to choose a company that provides excellent customer support.
A good provider should offer tiered plans for your business’s phone usage. You don’t want to be surprised at the end of the month to discover that you’re paying more than anticipated. You also want to ensure that the bill is easy to understand and manage. Having side-by-side comparisons will help you identify the most important features for your company.
Moreover, it would help if you chose a provider that offers cloud-based phone services and simple invoicing. You should also look for all-inclusive pricing if possible.
Lower Your Business Phone Bill: Switch to VoIP
A VoIP system can save a business 40 to 60 per cent on its monthly phone bill. Additionally, VoIP is more flexible and mobile than analogue phone lines. The business can call outside the office and explore untapped markets. VoIP also has no reliance on conference phone systems or a reliable cell phone network. If you want to learn how much you could save, use the Business Phone Calculator.
Maintaining legacy phone systems is expensive, and parts are often difficult to come by. Even if you find them, skilled technicians can be hard to find. In addition, maintenance and repair can be expensive.
There’s less hardware to maintain with VoIP and fewer components to damage. Because VoIP uses less hardware, there’s less chance of hardware, wiring, and cable damage. VoIP can help your business keep up with the demands of a growing team. Whether you’re a small, midsized, or large company, VoIP can help you cut your monthly telecom costs by 50 per cent. Most VoIP companies charge around £20 per month for a business line, including standard and advanced phone features. It can be as easy as switching to a new phone service if you’re considering VoIP for your business.
Lower Your Business Phone Bill – To Conclude
If you’re wondering how VoIP can save your company money, it’s easy to find out. Most VoIP systems come with an automated update option. There’s no need to call a technician whenever your system needs a fix. Unlike traditional phone systems, VoIP doesn’t require any maintenance, and you don’t have to worry about replacing the hardware or wiring. You can update the software from your computer, and you’re all set.
While the internet has transformed many aspects of business, phone systems remain essential for a business. While the internet has made communication and collaboration easier, many consumers want to speak directly to the business owner or the customer support team.
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