From Red Ink to Black—How Deduction Recovery Can Turn a Bad Quarter Around
- The HRG Team
- Aug 19
- 1 min read
Fictional Scenario: Summit Snacks entered Q2 expecting strong numbers from a big club-store launch. But by June, the CFO’s forecast was grim—unexpected freight chargebacks, OTIF penalties, and compliance fines eroded margins. Losses looked inevitable.
Then came the deduction recovery audit. By chasing down invalid claims—some more than 18 months old—they recovered $180,000. That was enough to close the quarter in the black and preserve key investor relationships.
The Lesson: Deduction recovery isn’t just an accounting function—it can be the difference between a tough quarter and a catastrophic one.
Why It Works:
Many deductions are invalid or duplicated.
Post-audit claims often go unnoticed until it’s too late.
Recovery injects immediate cash flow without loans or credit.
Numbers That Matter: Suppliers who actively manage recovery can reclaim 30–70% of disputed amounts, depending on category and retailer.
Take Action: If your P&L is bleeding, don’t just cut costs—recover revenue you already earned.HRG’s experts can get money back into your account fast.
