Today's businesses use their phone lines for far more than incoming and outgoing calls -- and increasingly the lines are getting tied up.

E-mail, Internet, voice mail, remote access to computers, teleconferencing and facsimiles may be inadvertently costing your business money if clients are getting a busy signal or spiraling into a voice mail, menu-driven labyrinth.  Certainly, strategies such as scheduling remote downloading, multiple faxing or researching on the Net after peak hours can stem some of the strain on the phone system.  But overall, a company's telecommunications should be monitored on a regular basis.  If you wait until a need is apparent, you may already be losing customers and profits.

Reviewing System Use

• How do your phone lines currently serve the company? Consider e-mail, Internet, faxes, computer access from remote sites, voice mail, call forwarding, teleconferencing, paging.
• How many telephone sets are currently used?
• Are there any additional features that would be beneficial?
• Is the phone system overloaded at any time?
• Do you presently have, or need, dedicated lines for computer access, faxes and/or Internet access?
• Are additional phone sets and/or line required?

Upgrading the System

Upgrading to a system that will meet current and future needs is not inexpensive so be sure to look at all of the options as well as obtain two or three quotes.  System considerations include:

• Does the system provide step-by-step programming instructions for ease of use?
• Does the supplier offer a course in programming the features as well as provide adequate written instructions and a support number for quick fixes?
• Is voice mail built into the system? How many minutes of messages can be retained in each voice mailbox and for how long?
• Does the voice mail system have interactive voice response capabilities? This feature allows callers to obtain prerecorded information about the company's business hours and products or services.
• Does it have automatic call distribution, knows as ACD?
• How many lines and phone sets can the system handle in view of future expansion?
• Can the system tie into a public address system to allow paging?
• Can long-distance call access be blocked on specific telephones, such as at the reception area or loading dock?
• Is it possible to mix and match telephone full-feature sets with less expensive, simple sets according to user needs?
• Can the telephone sets be hooked up to the computer to permit computer keyboard dialing?

Cost Considerations include:

• What is the cost of purchasing the system versus leasing?
• Is there a monthly service cost?
• What will it cost to add telephones or additional lines at a later date?
• What are the terms of the product warranties on the telephone sets and the internal system?
• What is the cost of a service or extended warranty package and what does it cover?
• Will the system track long distance calls by telephone site and call number placed? Does it distinguish between faxes and voice transmission? These features would be handy for service or support industries that bill for time on the telephone assisting clients.
• Who pays for maintenance if the unit is owned versus leased?
• In the event of breakdown, is a replacement system immediately available?
• Are there locations concerns such as temperature, humidity, electrical surges or brownouts that will create added cost for surge protectors, location of main server, etc?
• Will the system accept new cards or chips for future applications? In the industry, this is referred to as "scalability".

Keeping Pace

In prior years, the phone with the most bells and whistles was only found at the receptionist's desk. Today everyone in the office needs a versatile phone set with features such as push-button key pad, voice mail, message light, auto dial, speed dial, forwarding, conferencing, hold and sometimes call display, additional lines and sophisticated programming capabilities.

The company's telephone lines are a critical link to the outside world. As the business grows and user needs change, the owner/manger needs to ensure the company's phone systems are keeping pace.

The above provides general information only. It should not be regarded or relied upon as accounting or taxation advice or opinions. Logan Katz LLP Chartered Accountants would be pleased to provide more information or specific advice on matters of interest to you.

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