Significant potential cost savings in your office are sitting on your desk just waiting to be added to your bottom line. A careful telephone bill audit could save you thousands of dollars every year — and doesn't have to cost you an extra penny.

First of all, time is crucial. It's possible that you'll only be able to recover overpayments for 12 months even though you have been over paying those charges for years. That's unfortunate.

Regardless, in today's economic climate, all savings are valuable. Here are some tips for putting thousands back into your pocket rather than your phone bill.

Knowing your phone bill leads to quick refunds and credits.
Check every line item on your bill. Make sure you know what the charge is for and that it matches the terms on your contract. Mistakes happen. Further, confirm that all services are actually working at your location. Look for voice mail that has never been turned on or lines that have never been connected. This can result in a quick refund or credit to your account.

Have you moved recently or changed service providers?
Check your bill. Did you forget to disconnect your old lines or services? The phone company may not do it for you, even if it puts your new lines in. It's a common mistake.

Are you being double-billed for services?
Carefully review all of your bills to ensure there are no duplicate charges for long-distance calls or other services. Comparing multiple bills side by side will help you to pick out any anomalies.

Check your taxes.
Are you outside city limits but continue to be billed city tax? This happens more often than you might think. Are you being billed correctly for all taxes and fees? Ask your provider.

Check for late fees.
Are you paying on time but still being charged a fee? Check your due date.

If you find discrepancies in your phone bill, keep the following in mind:

• Don't be afraid to question service charges. If it is difficult for the phone company to determine who ordered a questionable service, it is likely to give a refund. Don't be afraid to ask, "Who ordered this service and on what date? Can you fax me the contract?" If they can't produce a contract, there likely isn't one.
• Be confident when requesting a refund. If you are confident and clearly state that you expect savings in the form of a refund or credit, more often than not you will receive one. Never accept a "No" from a person who does not have authority to say "Yes." Ask for his or her superior.

The next step in ensuring you're not wasting your hard-earned money on services you don't need is to determine your true service needs. Consider the following:

• How many phone lines/trunks you really need — A quick indicator is that long-distance only shows up on a few lines, but only a traffic study performed by your provider will provide you with the real answer. You may be able to save thousands of dollars simply by reducing the number of lines you currently have.
• If your phone company offers a "utility" line — These lines, which are typically used for faxes, modems, alarms and elevators, don't provide a lot of features, but they are generally half the price of a regular line.
• Your data needs — Ask your provider for a traffic study. If you have a data T1, consider switching to higher-bandwidth DSL or Ethernet and save up to 75 percent. Typically, these have a great history of reliability. If reliability is paramount, combine DSL circuits from two different providers or a cable company for double the bandwidth and reliability.

• Know your true requirements for dial-tone and data and your provider will take you more seriously when you tell them you are shopping.
• Know and understand your contract. Verify how your provider arrived at its numbers, and know how much service you can disconnect without incurring any charge. Be sure to stress to your provider that you are trying to work with it but that the market is forcing you to explore options.
• Explain your changing office dynamics. If your office has half the staff it had a year ago and you have a full T1 of voice (24 channels), see if your provider will allow you to re-contract for 12 or less trunks. This can save you as much as 50 percent.

Finally, when you've reviewed your bills, determined your true needs and secured all refunds and credits, you may be ready for new services. Before you sign up for any new service, first check your options and be selective in choosing a consultant whose fees are based on actual savings. Professional telecommunications consultants can employ a number of techniques with no upfront cost to your small business at all.

This may sound like a lot of work, but with a bit of effort, you can keep your money where it belongs: in your pocket.

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Nathan Watkins has been an expense reduction consultant for 22 years and has served as president of Seattle Line Communications, Inc. for more than 16 years. Seattle Line Communications has helped hundreds of companies of all sizes obtain refunds and reduce monthly expenses in their phone bills for over two decades. Nathan welcomes questions at Help@Seattleline.com and 206-930-5050. Visit www.SeattleLine.com for more information.