The Increasing Importance of Using an Efficient Purchase Order System
The purchasing function is more than just the act of purchasing of goods. When performed well, nonprofits could save money and time. Good news is that with technology this crucial function has become easy. When nonprofits invest in an efficient system this is what they can benefit:
- Improved policy compliance
- Get reports in real-time
- Helps charity beneficiaries access help immediately
- Reduced costs
- Allows leaders to approve PO requests anytime
Let’s delve more into detail on the above-mentioned points.
- Improved policy compliance
The purchasing function has a far-reaching impact on overall nonprofit policy compliance. The following are five critical areas of compliance for nonprofits:
- compliance with your governing document
- compliance with the Charity Act and the Companies Act
- compliance with employment legislation
- compliance with fundraising law
Nonprofits with a dysfunctional purchasing system find it hard to comply with the above. This is because their paper-based system can not allow them to provide reports in-real time.
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Get reports in real-time
Financial year end is a period when nonprofits put together their annual reports. This is a period when leaders should realize that a dysfunctional purchasing system impacts negatively on the overall financial position.
When auditors request purchase order reports, nonprofit leaders still using manual PO systems will helplessly scratch their heads because:
- They won’t access reports quickly as their systems are dependent on one person
- The information got lost
- It’s impossible to locate PO reports in real-time
- It’s impossible to track deliveries
Nonprofit leaders may spend days or even weeks trying to locate a single 2016 PO report for a delivery that never happened. To avoid this, it’s advisable that you start searching for a user-friendly PO system that your team can use without any intensive training.
Helps Charity beneficiaries access help immediately
The manual PO can cause unnecessary distress as programs have to stop while charity staff waits for the approver to approve. The slowness of approval process may leave hundreds of orphans starving or even terminally ill patients dead.
The continuity of charity programs depends on placing the right purchase orders. Since a purchase order is a legal binding between the two parties, it should always be accurate, clear and acceptable to both parties. It’s also important that a PO request is approved by the right person, even when the PO approver is not in the office.
The trimming costs have become a way of life for nonprofits leaders. As inflation rises erratically, funding opportunities become scarce. Organizations should look for technological solutions that help them to do more with less funds. For example, you save time and money when you use a fundraising platform that reaches more people in just a few seconds.
Other ways to reduce costs include:
- Faxing after office hours because faxes are cheaper after 5:00 P.M.
- Book flights early
- Find courier companies that are willing to donate transportation services
Allows leaders to approve PO requests anytime
Nonprofit leaders should choose systems that allow them to approve PO requests anytime. The PO software should also allow them to see POs where ever they are.
The right purchasing app should help your organization to create POs and send them to vendors immediately. Rubberstamp.io is one PO software that is trusted by one of the largest nonprofit organizations, UNICEF. It is an award-winning app that is compatible with all devices. It can also do the following:
- Create POs to send directly to suppliers in seconds
- Gives you control over spend
- Helps you to pay suppliers the correct amount
- Saves you time and money
Rubberstamp.io is the fastest way to sort out your nonprofit’s wasted spend with the least amount of effort. You can get your whole team on board within hours and access fantastic features to suit all your purchasing needs.
With Rubberstamp.io, you can load suppliers & products and view your PO history on demand. It’s customizable so you can capture info important to your company. The share button allows you to share your PO’s on any platform available on your phone. Purchase orders sent to suppliers, act as a valid contract between your company and the supplier.
Don’t let budgeting outsmart you. Sign up for a free trial today. Rubberstamp’s team is available 24/7 just to make sure that, you can budget like a pro. If you’d like more info about Rubberstamp.io (an automated purchase control system), please contact: firstname.lastname@example.org
Originally posted: By Alex Mitchell on Feb 17, 2017