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Bill Auditing
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INTRODUCTION:
This is one of the best new business ideas for entrepreneurs. Large companies spend tons of money on gas, electricity, water, insurance, telephones and a wide variety of other services. These bills are often difficult to understand, especially utility bills, which are among the most complicated. Nevertheless, many of these bills are simply paid without their accuracy being verified. Often times, hundreds of dollars are recovered when a bill auditor carefully checks these bills.
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KNOWLEDGE, SKILLS AND ABILITIES:
You will verify bills against purchase orders, check to see that goods have been delivered, compare charges against what the contracts allows, and check the math, tax rates and other rate classifications to make sure that your clients have not been overcharged. When overcharging is discovered, the auditor negotiates a refund and usually takes a commission from the amount recovered. Therefore, it is a good idea that you have basic math skills and the ability to spot errors. It helps to be familiar with the utility, and telephone companies billing cycles, tariffs, statements and charges.
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FINDING CUSTOMERS:
Direct solicitation of businesses that are likely users of large amounts of energy, such as stores, schools, hospitals, restaurants, etc. Other candidates are coin laundries, automotive repair shops and other smaller service based businesses. Your best bet is to use direct mail and then follow up your mailing with a telephone call. You could also give a free seminar or workshop at your local library or community center that explains the amount of money that can be saved by auditing.
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START UP COSTS:
Start up costs for this type of business are very low. You will need a personal computer, printer and other general office equipment including a telephone, desk, chair, etc. You will also need business cards, a brochure and letterhead.
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EARNINGS POTENTIAL:
Auditors charge 50 percent of past and future savings. Therefore, if you do not find a billing discrepancy, you will not get paid! Lucky for you, an auditor can find a billing error 99.9% of the time. Average fees run from $1,000 to $4,000 on refunds. Once seasoned, an auditor can do 1 to 2 claims per day. A slow rate would be 2 to 3 per week. Based on 2 claims per week (producing $1,000 each for 50 weeks) would bring you approximately $100,000 per year.
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GETTING STARTED:
As a beginner, your studies should focus on tariffs, rate structures, meter readings, and how to decipher a utility bill. Master your state's tariffs, the maximum rates charged and profit percentages assigned to utility companies as regulated by public utility commissions. If a utility company is charging your customer above the set tariff, you have found a refund candidate. Tariffs are public information. You can request a copy from your utility carrier, free of charge.
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RESOURCES:
Auditel Marketing Systems - Offers a comprehensive training program. For more information, contact them at 233 Springfield Ave., Joliet, IL 60435; (800) 551-9282; fax (815) 741-5335
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September 08, 2010
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