How to Spot Funky Vendor Charges Before They Cost You

As a business owner, vendor relationships are built on trust. Even with that, the most reliable vendor can make mistakes. Unfortunately, those errors can quietly drain your profits if you’re not paying close attention.

Recurring subscriptions, one-time service fees, unexpected rate hikes, and duplicate charges can all slip through the cracks. When you’re busy running your business, it’s easy to assume everything is working as it should. That’s how funky vendor charges go unnoticed. That is, until they become costly.

This guide outlines how to prevent those charges from eroding your margins and what systems to set up for ongoing protection.

Step 1: Know Your Baseline Vendor Costs

Start by making a list of recurring vendors: software tools, platforms, service providers, and contractors. Record what you expect to pay each month or billing cycle. This becomes your baseline and makes it easier to spot anything outside the norm.

If you notice a charge that’s higher than expected, out of place, or unfamiliar, flag it immediately. These could be billing errors, auto-renewals for tools you no longer use, or unauthorized transactions.

Step 2: Review Vendor Charges Regularly

A weekly or bi-weekly review of your expenses helps you catch issues early. If you work with a bookkeeper, ask them to create a vendor charge report that highlights any new vendors, changed amounts, or duplicates.

It’s also smart to match vendor invoices to payment records. If you’re charged for services you didn’t receive, or billed twice for the same month, this quick review can save hundreds, if not thousands, over the course of a year.

Step 3: Set Up Systems for Monitoring

Use your accounting software to set up custom alerts or rules. Many tools can flag charges over a certain threshold or identify new vendors being added to your expense list. These automated tools give you a second set of eyes, reducing the burden of manual tracking.

Better yet, establish a routine with your bookkeeper to perform these reviews on a set cadence, especially if you’re on weekly or daily bookkeeping support.

Step 4: Empower Your Team

If your team members have access to business credit cards or purchasing authority, make sure there’s a clear process for vendor approval and expense documentation. Transparency isn’t just about control, but about building a culture of financial integrity.

Step 5: Reconcile Early and Often

Bank and credit card reconciliations are your safety net. By comparing your transaction list to what’s recorded in your books, you’ll catch sneaky charges before they spiral. This is especially powerful when done weekly or daily.

In Summary

Spotting funky vendor charges before they cost you isn’t about distrust of the people around you. It’s about diligence. With clear systems, regular reviews, and a team that understands the “why,” you can stop leaks before they start and keep your business running lean and strong.

A little attention now goes a long way later. Your bottom line will thank you.

If you’re not sure what to look for, we can do a FREE diagnostic review of your QuickBooks.