Some people still confuse purchase orders with sales orders. I am not certain if what confuses them are the words “purchase and sales” or the “order” at the end. While there is an overlap between purchase and sales orders, they differ greatly.
Misunderstanding these financial terms is not an option. So, I think drawing some parallels between the two would help.
This could be one of the reasons why you can’t match invoices to construction sites:
- 1. Because your company still uses paper-based systems.
- 2. Or, because your company uses a complex software that is too intimidating to your employees. And, who would blame them for being reluctant to use it?
Procurement mistakes are part and parcel of growing a successful business. They serve as valuable lessons but they shouldn’t happen all the time. Failure to curb procurement mistakes early on can deplete your budget. Before you know it, you may find yourself out of business, and looking for a job.
Procurement mistakes are often hard to detect. Particularly when your company uses Excel spreadsheets and email to process purchase orders. You can simply avoid this drawback by using an efficient purchase order software.
Failure to budget efficiently does not mean your business idea is not working. It could just be a sign that you need to equip yourself with the right budgeting tools.
Please keep reading only if:
- You had a great sales month but, to your dismay, have no money in the bank.
- Your business is growing fast but there is never enough left over to give yourself that raise you so richly deserve.
Or my favorite:
- Opening your management accounts feels like scratching off a scratch card – you never know what you are going to get.
Having no approval routing in your company increases opportunities for overspending. For instance, when your company uses only Excel spreadsheets, it’s hard to set up approval routing, which means you can’t spend within budget.
This is what may happen when your company doesn’t have any approval routing in place: