Why is it important for all companies to have a PO system?
Raising Purchase Orders in an organised and efficient manner is not always regarded as a high priority task for smaller businesses. It can, however, have a significant impact on a company’s finances.
When a Purchase Order has been generated using an automated Purchase Order system it instantly becomes visible to those who need to be kept informed such as the Finance Department or Procurement. Storing all Purchase Orders electronically also allows you to access historic information regarding pricing and supplier details so checks can be made on price increases etc.
A Purchase Order acts as confirmation of agreed prices so there can be no discrepancies when invoices are received. When the invoice arrives a quick check against the PO online will reveal any anomalies and can be challenged using the evidence.
A Purchase Order system can also tell you which goods have been received and which are still outstanding, which goods have been invoiced and which have not. When it comes to generating your Year End accounts all this information is important and can be requested by auditors.
In conclusion, a well managed system will give much tighter control over expenditure, avoid duplication of orders and easily expose any outstanding costs or over payments.
For further information on how an automated PO system can help you run your business more efficiently please click here or call Cloud B2B solutions on 0800 840 3336.
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