Contractor and vendor billing reconciliation. To reduce overbilling, excess costs and manual processes.

Contractor billing reconciliation is the vendor reconciliation process of validating contractor invoices against actual work performed. This includes comparing billed hours to productive hours worked, identifying discrepancies and ensuring contract terms are met. Organizations with significant contractor spend often face challenges validating billing accuracy as manual processes are time-consuming and prone to data entry errors. Traditional approaches also lack the ability to detect duplicate payments or maintain accurate financial records across multiple vendors. An analytics-based approach provides automated reconciliation, reducing human error while ensuring accurate and up-to-date records.

Organizations lose up to 30% in contractor spend due to overbilling, billing errors and duplicate payments. Without an efficient validation method, companies lack visibility into billing accuracy and have no data to dispute overcharges or maintain accurate financial records. Manual processes are time-consuming and prone to data entry errors that can impact cash flows. Contractor billing reconciliation transforms billing from a trust-based system into a data-verified process, enabling finance and operations leaders to identify problems, recover costs and ensure timely, accurate payments. This results in significant cost savings and improved vendor accountability.

Using an automated workforce analytics tool to reconcile contractor billing provides visibility that manual processes cannot match. Benefits include identifying and recovering overbilled amounts with concrete data evidence, automating validation processes that are time-consuming and prone to data entry errors, seeing patterns and trends across teams and vendors, ensuring contract compliance through systematic monitoring, reducing human error in validation and maintaining accurate financial records. This automation eliminates manual processes that typically take days while ensuring accurate payment and helping organizations better manage outstanding invoices and balance tracking. Organizations with 100+ contractors and $5M+ annual contractor spend can identify and recover substantial excess costs while improving cash flows.

Common challenges include no visibility into billing accuracy, time-consuming manual validation , data entry errors leading to duplicate payments or processing errors, lack of data to dispute overcharges, no systematic compliance checking and difficulty maintaining accurate financial records across multiple vendors. Traditional approaches require reconciling vendor invoices against internal records manually, which creates bottlenecks and increases the risk of errors. Many organizations struggle to track outstanding invoices and balances across their accounts payable ledger efficiently. Without an automated workforce analytics tool, finance teams spend significant time on manual processes that could be streamlined, ultimately accepting billing errors and potential issues as the cost of doing business.

ActivTrak provides analytics-based reconciliation that compares billed hours to productive hours worked without requiring contractors to change their billing workflows. Our solution uses passive monitoring through the ActivTrak Agent to capture productive work, which is then compared against billing data imported via Google Sheets. Pre-built BI templates for PowerBI, Tableau and Looker provide instant visibility into excess billing, utilization patterns and financial impact. This automation validates billing accuracy while respecting contractor autonomy and maintaining productivity, replacing time-consuming manual processes with a streamlined vendor reconciliation process that ensures accurate and up-to-date financial records.