TEM myths debunked — starting with what TEM actually means for your bottom line. Learn more about telecom expense management and how it connects to the broader world of TEM. Technology Expense Management (TEM) is a growing part of almost every industry. It’s the method of partnering with a third party 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 TEM myths people believe about TEM.
Myth 1: 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. According to Gartner, TEM encompasses far more than just software — it includes the processes, people, and policies that drive smarter IT spending.
Myth 2: 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. Learn why 5 reasons TEM might right for businesses of every size and industry.
Myth 3: 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. The 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.
Myth 4: 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. Find out what 5 TEM questions ask yourself before bringing a TEM solution into your organization.
Myth 5: 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 thing 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.
The Truth About TEM Myths and What They Cost You
These five TEM myths are among the most persistent barriers stopping businesses from realizing the full value of expense management. Whether you’re a small business or a large enterprise, the right TEM partner meets you where you are. Understanding what MSPs consultants need know about TEM can also open doors to smarter, more scalable solutions for your organization.
