What is spend leakage, and 5 common causes of spend leakage in companies?

Spend leakage is the gap between what a company should spend and what it actually spends due to gaps in visibility, processes, and financial controls. This article explains what spend leakage is, and what it is not, before exploring five common causes in Indian companies: out-of-policy spending, missed GST input tax credits, maverick spending, duplicate payments and billing errors, and delayed visibility into organisational spend. It also examines why leakage often goes unnoticed and how companies can shift from reconciling past spending to monitoring and controlling spend in real time. With better visibility, companies can identify leakage earlier, improve compliance, recover value, and make smarter financial decisions.
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