oboloo Glossary

Spend Leakage

Spend Leakage Definition

Spend leakage is defined as the amount of money that a company spends on unnecessary or unapproved expenses. This can happen when employees make personal purchases with company funds, when expenses are not properly documented or approved, or when suppliers overcharge for goods or services. Spend leakage can be a major problem for businesses of all sizes, but it can be especially damaging to small businesses that have limited resources.

While there is no sure way to prevent spend leakage entirely, there are some steps that companies can take to reduce the risk. These include having clear policies and procedures in place for approving expenses, ensuring that all employees are aware of these policies, conducting regular audits of company spending, and working with reputable suppliers who offer competitive prices. Taking these steps can help to minimize the amount of money lost to spend leakage, and ultimately help improve a company’s bottom line.

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