uccessful communications cost management depends on a high level of consensus among all three groups, and in turn all the department managers are responsible for creating the budget and managing to success and satisfaction of management and stakeholders. The purpose of this chapter is to provide understanding and insight into creating and planning communications operating expense and capital budgets to fit within an existing accounting and financial operations system. However, significant improvement in managing communications cost (outlined in Chapter 11) is likely to require changes in the way communications expenses are first accounted for and then budgeted in the future. Recognize up front that changing accounting practices and processes should not to be undertaken lightly because change causes variances when current period performance is compared to previous periods. It can be seen as an inconsistent practice, which is a big flag-raiser with management, auditors, and investors. Getting past the flag requires an explanation. Be prepared up front, and then as the changes take effect and are noticed, be prepared to explain them again. Initially, most of the changes required to realize significant savings involve reclassifi- cation of expenses in the telephone expense account. This can be natural outcome of implementing machine-based invoice validation and establishment of a standard cost system for communications. Establishing and implementing standard cost and machine-based invoice validation SO that each invoice is classified, coded, and recorded prior to being paid provides a basis for analysis, which can in turn support more accurate budgeting and financial planning in the future. The bottom line is accounting will have to be convinced that the advantages outweigh the disadvantages before changes can be made. There is a two-part message: (1) be convinced and sure of 12 BUDGETING AND FINANCIAL PLANNING your ground, and (2) be prepared to educate, inform, and convince your colleagues and executives there's "g