How Security Management Software Reduces Overbilling
Like many other industries, the physical security industry has had its share of challenges when it comes to billing and financial management. Often, billing discrepancies in the security industry are caused by outdated practices, human error, and a lack of reporting transparency.
Businesses can suffer significant financial losses due to these consistent billing issues, costing them anywhere between thousands or even millions of dollars annually, not to mention the strain it can have on the vendor relationship when the business’s trust in its security vendors is compromised.
With 75% of businesses reporting security becoming a higher priority in 2023, with an expected 15.3% increase in security-related spending over last year, it becomes clear that businesses will need to find a solution to this industry challenge if they want to maximize their security expenditures.
By investing in a security vendor management platform, businesses can gain the transparency and visibility they need to take back control of their data and minimize the risks of overbilling and rogue spending as a result. Read on to learn how billing discrepancies can occur in the physical security industry and solutions for how security management software can help reduce overbilling.
Unraveling the Complexity of Overbilling in the Security Industry
Billing discrepancies aren’t a new problem. Some stem from unintentional clerical errors, while others are the result of a more calculated intent. In a recent case, Time Magazine reported “a federal class action lawsuit filed in 2022 alleged that North America’s largest security firm pays employees based on scheduled hours rather than actual hours worked.”
Rogue spending and overbilling have severe consequences for enterprise businesses, which is why it’s imperative to identify the root causes and prevent them from occurring.
Check out some of the main reasons behind overbilling below:
- Lack of Transparency: Some security firms might not provide detailed breakdowns of hours worked vs. contracted. This lack of reporting can make it easy for overbilling to go undetected.
- Unmonitored Spending: When clients lack access to their own data to review the services they’re being billed for, it can create challenges in comprehending the exact nature of the charges, which, in turn, can foster unauthorized spending and provide opportunities for vendors to exploit the system.
- Reliance on Outdated Systems: Many security firms still employ manual data entry or other antiquated methods, such as logging hours using paper time cards. Depending on human accuracy can result in data that is misplaced or misrecorded.
These seemingly minor oversights, when scaled across a vast workforce, can translate into substantial financial impacts. By addressing the root causes and modernizing practices, the security industry can pave the way for more accurate and trustworthy billing methods.
Benefits of Using a Security Management Software To Reduce Overbilling
Overbilling, regardless of its cause, can become a thing of the past with the right digital solution. A security management platform is a comprehensive software solution designed for businesses to oversee and manage their entire security operations, providing them with the tools to drive program performance.
With security management software, businesses can:
- Reduce Human Error: The automated nature of a digital tool ensures pinpoint accuracy, as human errors get eliminated from the equation.
- Monitor in Real-Time: By offering accurate time and attendance monitoring, businesses can ensure that no shifts are double-billed or overlooked.
- Access Transparent Data: With a security management platform, businesses have access to their own data and reports, offering clear, immutable, and timestamped records of any significant events or observations.
- Enhance Client Relationships: With data and reports owned by the client, instead of the vendor, the security vendor is now held accountable for meeting performance requirements. By achieving this level of transparency, a more trusting relationship is built and service quality is improved.
- Streamline Operations: On the operational front, digitalization translates to fewer administrative burdens. No longer will security managers have to sift through stacks of paper, manually rectifying discrepancies — the software handles the heavy lifting.
Choosing the Right Security Management Software
The market today offers a plethora of time and attendance tracking tools, but most are not developed for the unique challenges and needs of the security industry. For businesses with multiple security vendors to manage, prioritizing a security management software that comes with comprehensive tracking, real-time monitoring, incident reporting, and a user-friendly interface that provides clear insights into actual hours worked versus hours billed is crucial.
Securitime’s Solution to Boosting KPIs
Securitime is the industry-leading digital platform that optimizes multi-vendor enterprise security programs through centralized management, robust performance analytics, and transparent billing data to maximize security investments.
Securitime offers a user-friendly web app, allowing security officers the ability to seamlessly clock in and out from any location, digitally. Each security officer’s entry and exit times can be recorded in real-time, ensuring accurate time and attendance tracking.
Tardies, open posts, and punch data are then synced to both the client and vendor portals, enhancing program visibility and making discrepancies between actual hours worked vs. hours contracted become immediately evident.
This level of visibility provides businesses with the tools to drive accurate invoicing and ensures security resources are fully utilized, leading to increased operational efficiency and optimal returns on security investments.
In fact, Securitime clients have witnessed an annual ROI between 10-24%. Check out our ROI calculator to see the potential returns from partnering with Securitime.
Beyond just providing tools to drive invoice accuracy, this enhanced visibility also fosters trust. When clients can clearly see and understand billing parameters, the foundation for a stronger, more trusting relationship is set.
A Glimpse into Real-World Overbilling Challenges
One of the nation’s leading retail giants faced billing discrepancies from their security service providers. With numerous stores nationally, manually verifying hours logged by security personnel was daunting. They turned to Securitime’s software to automate and streamline this process. Almost immediately, the system flagged various overbilling instances, some accidental due to manual errors and others more systematic. Armed with precise data, the retailer has since been able to achieve a 97% threshold in actual hours worked versus scheduled, resulting in 10-20% annual ROI.
“After implementing Securitime, we realized we only had coverage for about 80% of the hours some of our largest security providers were invoicing us for. On average, it was probably about 19% overbilling with them.” – National Grocer
“We award contracts based on data collected in Securitime. We have a 97% threshold in terms of actual hours vs. scheduled hours. If they’re not up to 97%, we consider terminating the vendor.” – Fortune 50 Retailer
Billing inaccuracies, if left unchecked, can cast a shadow over the security industry, diminishing trust and leading to serious financial impacts. The solution lies in implementing a security management platform, like Securitime. Such tools, built with the challenges of the security industry in mind, help facilitate not only accurate billing but also a suite of other advantages that can optimize security program performance and redefine the client-vendor relationship.
For companies at the crossroads, pondering whether to make the digital leap, the benefits are clear. In the modern era, security management software isn’t just a luxury; it’s an imperative.
Interested in learning more about how Securitime’s security management software can help provide billing transparency and reduce overbilling? Book a demo with Securitime today.