Revenue Leakages

Every organization has revenue leakages. Some has bigger issues and some are able to manage it successfully. Housing societies are no exception. There are multiple ways in which they lose revenue. Let us analyse the scenarios of how they lose revenue.


Housing societies could be billing their residents for maintenance, electricity, back-up electricity, water, other maintenance charges etc. The few areas of revenue leakages are as follows:

  • Delayed Billing –It is a very common occurrence. Every single day of raising the bills late is resulting in higher cost of capital for a housing society.

  • Lower Frequency of Billing – Sometime societies’ bill at lower frequency. For example, they may be raising electricity bill on bi-monthly basis while they can raise monthly bill.

  • In-correct Billing – This is also very common. There are mistakes in the bills. Quite sometimes, if the bill amount is higher than the correct value, the residents would get it corrected. While, if the amount if less than the correct amount, it may escape attention. The wrong bills could be raised with wrong electricity consumption, wrong tariffs, incorrect client category, wrong billing calculations etc.

  • Missing Subscription – There are times when the bills are not raised for certain units as they are missing in the subscription list.

  • Cheques not deposited – It happens quite a few times that all the cheques submitted by the residents do not get deposited in the bank. Sometime they are detected during bank account reconciliation. But there are times when the cheques are simply lost while the credit gets given to the client.

  • Penalty/ Late Fee Waiver – Quite a few times, the clients make a request for penalty and late fee waiver and there request gets granted. It is possible that with a better and quicker follow-up, the penalties can be avoided.

  • Write-offs – There are amounts which are written-off in case the client is unable to pay. The society may write-off some amount and may ask the client to pay a lesser amount in a bid to settle.


It is important that the society needs to follow proper process to avoid these revenue leakages. If a society has proper process and manual or rudimentary systems, with proper processes and supervision, the revenue leakages are plugged. However, if the society has good IT systems, the effort needed to supervise gets rationalized significantly and the instances of revenue leakages come down. It is still important to have good processes.

We believe that our platform has an excellent billing functionality and would help a society to improve billing processes.

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