[Blog] Start fighting revenue leakage with these first steps

We will guide you through the first steps towards fighting revenue leakage.

Most businesses are feeling the pressure of increased competition and faster processes, and spend a lot of money and energy growing their business. How terrible would it be that those hard-earned sales were not invoiced correctly?

What is revenue leakage?

Revenue leakage is when money flows unnoticed from your company. According to studies by EY, businesses lose on average 2% to 10% of revenue every year.

Common reasons for revenue leakage include:Revenue leakage

  • Inaccurate pricing - EX older prices
  • Excessive discounts - sales employees misusing discounts to make the sale
  • Missing service fees - transport or picking fees
  • Returns not registered correctly

When businesses get faster and more complex, the risk is that these cases are spotted later, if not at all. 


How to get started fighting revenue leakage caused by bad data in 5 simple steps.


With a coordinated effort, companies of all sizes have been able to stop revenue leakage. Here are the first few steps we recommend:

  1. Pick the team
    For a successful attempt, the team must include few key people: a person that understand the processes of the company, a data person that can dive into the data and find the errors, and finally, someone who is responsible for the data.
    Now the right team is set, and you are ready for the next step.
  2. Pick and map the process.
    The next step is to pick a process to start with and map up how it works with the right team. For example, your company might have known leaks in the invoicing processes that you could start with.
  3. Identify the leaks
    Dive into the data to identify where the leaks are happening and how frequent they are. For example, it could be that employees are often giving out high discounts or that quantities are not correct on invoices. Typically there are quite a few leaks found in this step, prioritized based on frequency, amounts, and risk.
  4. Ensure the process with automatic controls
    To ensure the leaks are prevented, you will need to implement automatic controls that notify when the leaks occur. exMon is an excellent agile tool to help companies of all sizes to create automated controls.
  5. Monitor and iterate
    With controls in place, you can now see how the controls reduce leakage, iterating the controls as needed.

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