Revenue that slips through the gaps is a differentiating element that determines how smoothly will your company succeed. Rather than letting rid of valuable assets and cutting expenses, it is easier to adopt tactical adjustments to halt income leakages, boost profitability, and streamline operations.
The use of automated expenditure management technology not only helps you reclaim leaked revenue but also eliminates errors by establishing responsibility and transparency. Let’s see how.
Why Expense Management Tool Necessary?
Companies can streamline and automate their company enterprise expenditure, profit greater control, and higher visibility while keeping expenses down by running real-time data by using an Expense Management tool.
Revenue Leakage Defined
Revenue leakage is the loss of revenue from your organization that goes undetected or unintentionally. While revenue and expenditure leaks can occur, revenue leakage is most generally defined as not invoicing (or under-billing) your client for items and services delivered.
What is the scope of the issue? Revenue leakage statistics vary, but most firms are expected to lose between 1 and 5% of their revenues before they can be realized, according to estimates. This sort of loss may have a substantial impact on the bottom line for large corporations.
How are you leaking revenue?
Understanding how income leaks arise in the first place is the first step toward preventing them. Prevalent causes of revenue leakage include:
Controlling Revenue Leakage with Expense Management Tool
According to the Aberdeen Group, businesses that use cloud-based expense management solutions spend 83 percent less on expense processing than those that do not.
(Statistics source – https://www.nexonia.com/5-signs-that-your-company-is-leaking-revenue-and-how-to-fix-it/ )
Expense management software may help reconcile spending with accounting software automatically. This allows you to see how employees spend corporate funds, allowing you to manage and monitor unlawful expenditures.
Preventing Revenue Leakage Means Keeping an Eye Out
Here are four ways to prevent revenue leakage:
Escalate the Revenue bar with Emgage
Leakage of revenue does not have to be an unavoidable part of doing business. Our agile expense management tool gives you the tools you need to simplify your finances, prepare for an audit, and report on the KPIs that matter to your organization. Leave no stone unturned with Emgage.