Skip to main content
2,200+ service businesses benchmarked. Do you know your gross profit per labor hour? See where you stand →
Level
← All finance systems

Open finance skill

Spend concentration review

Which vendors or categories create concentration risk?

Rank synthetic spend by vendor and category, then calculate concentration shares for an operator to interpret.

Inputs

  • Transaction list
  • Vendor mapping
  • Category mapping

Outputs

  • Top vendors
  • Top categories
  • Concentration shares

Checks performed

  • Vendor aggregation
  • Category aggregation
  • Top-five concentration

Guided synthetic example

See the check from input to decision

A growing contractor relies heavily on one fleet and equipment vendor.

This is the operating model we use at Level. The percentages are estimated shares of the work in a typical review. Actual effort varies with data quality, complexity, and the issue found.

1

Start with the source records

About 15% of work
VendorCategoryTrailing 90-day spendShare
Example FleetVehicles$72,00060%
Example SupplyMaterials$31,20026%
Other vendorsMixed$16,80014%
2

Run the deterministic check

About 20% of work

Aggregate spend by normalized vendor and category, then calculate each share of total spend.

3

Surface the flagged result

About 10% of work

Needs review

Example Fleet represents 60% of trailing 90-day spend.

4

Use recorded finance judgment to analyze possible reasons

About 25% of work

At Level, we record the review logic, known explanations, and questions our finance professionals use in this situation. AI applies that documented human judgment to organize the most plausible reasons, without pretending it knows which reason is true.

Possible reasons to investigate

Concentration is not automatically bad. A vehicle purchase cycle may be temporary, while recurring dependence could create pricing or continuity risk.

5

Make the final human judgment

About 20% of work

A Level finance professional validates the source evidence, challenges the AI-assisted analysis, and decides which explanation is supported.

How much of the spend is recurring?
What happens if this vendor changes terms?
Is concentration buying us better pricing?
6

Make the operating decision

About 10% of work

Separate recurring from one-time spend and decide whether alternative vendors or negotiated terms are needed.

Use this system

Start with the example, then inspect the structure

  1. Download the invented input and expected output.
  2. Replace one field at a time with a safe test value.
  3. Compare the result with the expected structure.
  4. Have a finance professional review every exception before acting.

MCP preview

run_synthetic_example {"slug":"spend-concentration-review"}

Human review is part of the system

This check organizes evidence and surfaces exceptions. A person with finance domain expertise still needs to interpret the result, validate the source records, and discuss the operating decision.

Open source does not mean open client data. We publish reusable finance tools, checks, templates, and playbooks. Client records, workpapers, credentials, communications, and private configurations remain confidential.