Overhead Reduction Services

Are you frustrated with the rise in costly and annoying add-on fees appearing on vendor invoices? I was reminded of this during a recent visit to a national car repair shop to have my oil changed and tires rotated. As expected, there was the usual oil disposal charge – a fee I had come to accept after companies began charging it a few years ago. My invoice this time showed a new charge – “Shop Fee”. What! It seems like many companies use inventive ways to generate extra revenues that often seem unwarranted.

How can you eliminate some add-on fees? Here are some tips:

· Pay bills online: How many times has the practice paid late fees because your “snail mail” (via USPS) payment arrived late? Credit card late fees have been rising over the last few years (now as high as $39). Furthermore, you incur finance charges when payments are late, even if you pay the entire balance. Paying bills online saves time, postage, and envelopes. You also receive instant payment confirmation. While some vendors permit you to make payments up until midnight of the due date, others set earlier cut-off times. Make sure you know your vendor’s cut off time. Better yet, get in the habit of paying your invoices a day or two early. You may be able to schedule payments in advance in which case you can review the invoice when you receive it, schedule an online payment on or before the due date, and consider the invoice “handled”.

· Avoid overdraft checking account fees: Overdraft fees - also known as NSF fees (“non-sufficient funds”) are also steadily rising. If your practice has paid NSF fees, consider establishing overdraft protection (i.e., your bank transfers money from another of your accounts or a line of credit to cover the shortage). These fees are much lower than overdraft fees. Even better, balance your checkbook regularly and always ensure there are sufficient funds in the account.

· Be careful when the “check is a bill”: Have you ever deposited a small check (e.g., $5.00) from your phone company only to begin seeing charges on your bill for unwanted services (e.g., online directory advertising)? Or, have you cashed a check from your credit card company only to receive unnecessary automobile club benefits? Perhaps you mistakenly thought the check was a refund. Require your staff to read all “small print” on the back of checks so you can avoid accepting checks that obligate you for products or services you do not want.

· Be on the lookout for compliance fees: Earlier in the year, many customers of one particular mega bank began noticing $139 charges on their merchant processing statements. The fee covered the cost for an outside vendor to audit each practice’s provisions for securing patient credit card information. The bank did not ask the practices if they wanted to use this vendor. They simply mailed the practices a letter advising them to call the vendor to conduct the audit, and the bank automatically charged the fee. Meanwhile, other banks and credit card companies were providing the service for free. I helped several practices recover these compliance charges. Don’t just automatically pay questionable charges. Discuss them with your vendors, and insist they remove unreasonable fees.

· Consider cancelling credit card terminal and postage meter insurance: Do you really need this type coverage? It can cost hundreds of dollars annually? Your vendor may provide free ink and paper rolls for your equipment, but you can purchase these supplies inexpensively elsewhere. Most practices have business insurance that covers damage to office equipment, so don’t pay for duplicate coverage. Most credit card terminals last for years. For the cost of two years of terminal maintenance insurance with some vendors, you could afford to buy a new terminal if yours becomes defective.

· Consider cancelling inside telecom wiring maintenance: When was the last time you had a wiring problem inside your office you had to pay to fix? Probably a while ago; maybe never. If you pay for inside wiring maintenance, consider cancelling your coverage if you think you do not really need it. Telephone companies fix many problems in the central office and outside your office – repairs you are not charged for.

Take action now to cut costs. Review your invoices carefully!

Jeffry Finkel is the President and owner of Overhead Reduction Services. He may be reached at (404) 995-9112, (877) 990-8746, or Jeff@OverheadReductionServices.com. View more money saving tips at www.OverheadReductionServices.com.