Introduction

Many businesses focus heavily on revenue growth but overlook cash leakage occurring through accounts payable. Vendor reconciliation plays a critical role in identifying hidden losses and strengthening financial controls.

What is Cash Leakage in Vendor Accounts?

Cash leakage occurs when:

• Duplicate payments are made

• Excess payments are not recovered

• Credit notes are not adjusted

• Old balances are never cleared

These issues usually surface only during audits—often too late.

How Vendor Reconciliation Stops Leakage

1. Identifies Duplicate Payments
Transaction-level matching highlights payments made more than once.

2. Detects Excess Payments
Overpayments are flagged for recovery or adjustment.

3. Cleans Long-Pending Balances
Old unreconciled balances are investigated and resolved.

4. Strengthens Internal Controls
Regular reconciliation enforces discipline in AP processes.

Business Impact

• Improved cash flow

• Accurate financial reporting

• Reduced audit risk

• Better decision-making

   

Why Outsource Vendor Reconciliation?

Outsourcing helps businesses:

• Save internal time

• Get expert-level reconciliation

• Receive clear, audit-ready reports

Ajaykumar & Associates supports businesses by delivering structured vendor reconciliation services that protect cash flow and improve financial visibility.