Making use of invoices and purchase orders software can save small businesses significant monetary costs that would otherwise have gone to hiring staff. Purchase order software makes it possible to generate purchase orders based on the purchase requisition. The purchase order gets sent electronically to an approved order. An automated invoice processing system equally reduces labor needs and speeds up workflow in small businesses.
There are hundreds of vendors offering invoice and purchase order software for small businesses. Each one offers unique features and pricing models. Here are a few important core features likely to add the most utility to a small business.
Automation of Repetitive Processes
A great invoice and purchase order software should enable the business to automate otherwise time-consuming and repetitive processes. For instance, once a purchase requisition is ready, it should be sent automatically to the parties responsible for signaling it off. Once approved, a purchase order should be generated and sent to the vendor. Triggers for action should also be set up so that people are notified when something is due for them to take action.
Automated Matching of Documents
Verification of the accuracy of documents is one of the most tedious works in procurement if handled manually. People will typically spend thousands of hours each year cross-checking invoices against delivery notes and purchase orders. However, if automated, the company saves time while increasing the accuracy of verification. A great invoice and purchase order software should allow automated cross-checking of documents.
Requesting Quotes for Vendors
Good software for purchase orders should have a module that includes a list of pre-qualified vendors and their catalog. This makes it easy to request and compare quotes from vendors during the requisition process. This saves the organization time when they need to procure items quickly while still getting the best possible value for money.
While the purchase order system may allow certain employees the power to make orders, a budget module ensures they do not go over an approved limit. A budget module will normally break down the various expenses by the line department or project they fall under. The module allows for the tracking of spending trends throughout the year.
Any procurement software must have a proper way of assigning users the correct rights based on their duties. This ensures that staff members-only access what they need to access to fulfill their duties. This way, there are no ambiguities regarding what every person is responsible for.
The admin should be able to create new roles or customize existing ones as the organizational structure evolves.
Analytics and Reporting
One of the main benefits of automation for an organization is the ability to collect data and get useful insights. Invoice and purchase order software should be no different. It should be possible to generate custom reports from the software to track various trends. For instance, managers can query the amount paid to a certain vendor based on honored invoices. They can also track the error rates of invoices from different vendors.
Being able to query internal processes is great for identifying inefficiencies and eliminating them. If a certain approval process takes unusually long compared to other processes, an inquiry would be carried out to establish the reason.
Automated handling of invoices and purchase orders enables an organization to adhere to regulations on transparency. It is always clear who signed off on purchases and payments. In addition, when audits need to be done, all transaction details can be recovered from a repository. If any amendments or corrections were made to documents, it is possible to retrieve previous versions.
Audits can also be carried out faster by querying a sample from thousands of documents.
Inbuilt Contract Managements
Great invoice and purchase order software should allow an organization to have a repository for vendor contracts. An automated contract management module is beneficial in ensuring adherence to contract terms. Both parties can quickly refer to the contract terms in case any dispute arises. Further,
The Main Benefits of Invoice and Purchase Order Software
There is numerous software to manage purchase orders and invoices. As mentioned earlier, the organization gets to reduce the cost of labor. Automation of repetitive needs reduces the labor hours needed to carry out procurement processes. However, there is much more than the use of software unlocks.
The first is the quality of data in the organization. The elimination of human error in recording and verifying transactions massively improves the level of data management within the organization. The accuracy of data is directly related to the quality of decisions made by relying on such data.
Automating procurement processes can also improve the relationship an organization has with vendors. Fast and accurate verification of invoices keeps suppliers happy because delayed payments are also non-existent. In fact, some applications have a portal from where suppliers can track their invoice processing. Such transparency serves the relationship well. The use of analytics also enables the organization to deliver useful feedback to suppliers, especially when they need to improve on something specific.
The use of software in invoice and purchase order management allows better procurement costs control. It’s possible to request quotes from vendors and compare them to find the best prices. Further, budget modules in purchase requisition software limit maverick spending.
If your organization is seeking invoice and purchase order software, check out ProcurePort’s e-procurement solutions. ProcurePort is the world’s leading provider of e-procurement solutions. We will help your organization set up the software to add the highest possible utility to your operations.