Revenue Leakage Assessment
Revenue leakage is broader than bad debt. Value can disappear through discounts never recovered, unbilled work, short payments, avoidable credit notes, unsupported deductions, expired claims or the cost of carrying cash long after the commercial obligation was completed.
Create a leakage ledger
For a defined period, catalogue value lost or at risk and give each item a cause rather than leaving it inside net revenue or receivables. Include both permanent loss and temporary loss of cash where delay has a material financing or operating consequence.
Commercial leakage
Uncontrolled discounts, rebates, extended terms, price mismatches and concessions outside approved economics.
Execution leakage
Unbilled deliveries, missed milestones, incomplete evidence, billing errors and claims not raised on time.
Collection leakage
Short payments, deductions, credits, write-offs and balances abandoned because ownership or documentation became unclear.
Follow the root cause to its owner
Finance may see the loss first but may not create it. The diagnostic traces each material leakage type back to sales, contracting, operations, billing, customer service, finance or credit so prevention is assigned where the value first escapes.
Results should distinguish recoverable amounts from structural margin loss. That prevents teams from spending recovery effort on a value concession that was contractually agreed.