CONSTRUCTION Accounting ARTICLE -
VoIP Helps One Contractor Lower Expenses
Target Audience: Construction Industry Professionals, Contractors, Construction Business Owners, Construction Accountant Interest, Construction News and Updates, Technology and Infrastructure Upgrade Interest.
While meeting with his financial advisor to discuss escalating expenses, a roofing and siding contractor in a growing suburban area mentioned that his telephone bills seemed to be growing exponentially each quarter.
One potential solution that came to the advisor’s mind almost immediately was a Voice over Internet Protocol (VoIP) system. VoIP digitizes phone calls, allowing them to be transmitted via the Internet. This cuts costs for several reasons, not the least of which is that VoIP services aren’t taxed the way standard phone companies are. In addition, VoIP providers don’t pay costly interconnection charges to other telecommunications companies, so they can pass this savings along to their customers.
Having worked with several other construction business owners on the financial feasibility of VoIP, the contractor’s advisor explained that, when selecting a system, he’ll face two basic options:
1. Software-driven systems. These are generally free to procure with limited features and easily expandable to include IP-to-landline calls, voice mail and international calling at minimal cost. Examples include products offered by Skype, Jajah, Yahoo! and Lycos.
2. Hardware-based systems. Although still economical, these require users to buy a box and subscribe to a service. They offer better dependability, improved signal quality, and, in some cases, bundled features. Vonage is a popular option, as are offerings from AT&T, Verizon, VOIP.com, ITP and magicJack.
The advisor noted that, because the contractor already had a wide area network and relatively new telecom equipment, he could likely keep his existing telephone system and use VoIP to make free interstate calls. He would probably need software, some minimal hardware and an existing private branch exchange (PBX). But he would likely spend significantly less than he would to install a whole new system.
Some vendors, the advisor warned, sell VoIP-only systems and may try to discourage buyers from combining VoIP and traditional systems. Others, however, will add VoIP to any existing network and then charge for upgrades if call quality isn’t satisfactory.
In this case, the contractor decided to integrate his existing phone system with a VoIP system — and so far, so good. His employees, a fairly tech-savvy bunch, appreciate the VoIP’s convenience, and the suburban area his construction company serves is “wired” enough to support it. Best of all, he’s cut his operating expenses markedly by lowering his phone bills.
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