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GLOSSARY

Money leakage

ALSO CALLED: MARGIN LEAKAGE · PROFIT LEAKAGE

Definition

Money leakage is what a business loses through small, repeated, unplanned gaps rather than through one visible failure — a price increase nobody checked, a delivery two crates short, an invoice paid twice, stock written off with no reason attached. Each event is too small to investigate on its own, and none of them appear in the accounts under their own name. Added together they show up as a business that is busy, growing, and somehow never holding the cash the growth should have produced.

WHY IT MATTERS FOR AN SA FOOD BUSINESS

What it changes in practice.

Leakage is a visibility problem before it is a discipline problem. An SA food operation runs across WhatsApp groups, paper delivery notes, a spreadsheet only one person understands, and an accounting package that sees everything a month late. Each tool is fine; none of them compare notes, and the gaps between them is where the losses live.

It is also the one thing an owner cannot fix by working harder, because the events are individually invisible. Finding leakage means comparing documents that currently never meet: the price list against the invoice, the order against the delivery note, the stock count against both.

AS A FINDING

What it looks like when Finch catches it.

PRICE WATCHNEW
Butternut up 12% at FreshCo since June, across three invoices nobody compared.
≈ R58,000/yr at current volumes
3 invoicesFRESHCO · +12% · ≈ 650 BAGS/MO · JUN–AUG
Draft supplier email·Show 6-month trend·Dismiss
ILLUSTRATIVE EXAMPLE
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