It’s easy to overlook your company’s purchase ordering process.
As business managers and owners, we spend a tremendous amount of our time focused on the revenue our company brings in. And that shouldn’t come as much of a surprise. After all, revenue represents a company’s lifeblood.
But you’ll eventually need to purchase supplies for your business. Whether it’s something as small as ballpoint pens to items as substantial as new laptops, you’ll eventually need to use a purchase ordering process at your company. When that time comes, however, you don’t want to be caught living in the Dark Ages. Typing up orders on Word documents and sending them over email may have been acceptable 20 years ago, but vendors expect a bit more today.
Still not convinced? Here are a few more reasons why your company needs to adopt a purchasing order process software system if you haven’t already done so.
1. A Purchase Ordering Process Software System Will Save Your Company Money
You may have noticed our posts almost always highlight how much your company can save after adopting new business software systems. Well, you probably won’t be shocked to hear automating your purchase ordering process will help your company’s bottom line.
In this case, the contrast in expenses related to a manual vs. automated order purchasing process is stark. According to an APQC study, a manual purchasing process can cost companies up to $506.62 per order. But why?
As is the case with so many other business processes that rely largely on human touch, the purchasing process is prone to human error. A simple entry error can undermine the entire process for a single order. Relatedly, during the busiest times of the year, the process can tie up many employees, creating a massive and costly bottleneck. More work typically equates to more hours, and often, more employee hours logged leads to more company funding spend on overtime.
2. A Purchasing Ordering Process Software System will Give You A More Accurate Record
It’s tax season. The onus is on your accounting team to discover business expenses that can be written off. Suddenly, you hear from your company’s controller: “We’re missing records from $10,000 in company expenses.”
Certainly this is an enviable position for any businessperson. Even those with the vaguest sense of how to run a business understand diligent record keeping is key to the success of any company.
But it can be challenging if you’re constantly receiving bills through email or snail mail. Any one of the correspondences can fall by the wayside. With an automated purchasing process, however, all of your transactions are conveniently recorded in the system.
Not only is this information valuable at the end of the fiscal year, but it also gives you in the minute insight into your company’s accounts and spending. You can easily measure the return on investment for any purchases you made and compare the prices you paid for myriad supplies with those offered by other vendors.
We always preach the importance of having access to your company’s financial data at your fingertips. It’s no different with purchasing.
3. It will Keep Your Company Data Secure
It has never been more important to have a sound cybersecurity system than now. Data thieves are constantly on the lookout for lax security practices on the part of companies and are ready to pounce at moment’s notice.
The purchasing process is especially prone to breaches in security. If you’re frequently sending orders over email, there’s at least a decent chance valuable information about your company can fall into the wrong hands. Once the information is out there, it can be very difficult to reign in fraud.
A quality purchase ordering software system can mitigate many of these concerns by encrypting your company’s precious data. While this won’t make it impossible for hackers to obtain your data, it will make the task that much more difficult. Over time, this will save your company money and help you build trusting relationships with your company’s vendors.
If your company is in the market for a new purchase order software system, Timac Business Systems can help. Sage Intacct offers can automate each step of the process, giving you peace of mind and freeing up your accounting team to allow them to do what they do best.
Contact us today for a free product demo!