Cashflow is one of the reasons four out of ten start-ups don’t make it past the first year. For instance, in one startup, it could be that the flow of cash in and out of business was intermittent. In another, it could be that there was insufficient capital.
You may ask, “How can I prevent cash flow problems in my business?” There are several ways you can do this, they include:
- Keeping your books organized,
- Implementing a strong credit control system,
- Maximizing profit (because lack of profit leads to lack of cash),
- Creating monthly cashflow forecasts,
- Keeping a close eye on purchases, etc.
Keeping an eye on purchases largely depends on the PO software used by your company. A software that doesn’t alert you every time a purchase requisition is loaded can’t prevent cashflow problems.
Procurementexpress.com is one PO software that gives entrepreneurs control over all purchases in these five amazing ways:
1. It alerts you every time a requisition is loaded
When a company uses paper-based systems, CEOs and CFOs alike do not have control over purchases. In other words, every time a requisition is created they don’t get a notification. Also, they can’t reject or approve the requisitions immediately since they would need to be in the office to do this.
The situation gets more difficult if those companies have a habit of shredding documents. For instance, someone might inadvertently shred a requisition while waiting for a decision maker to approve!
How can an efficient PO software change all this?
Well, an efficient PO software allows you to restrict purchases by alerting you every time an employee sends a purchase requisition.
For example, Procurementexpress.com send you a notification everytime an employee creates a purchase requisition.
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2. It allows you to plan your purchases effectively
You can’t boost your company’s cashflow without planning for your purchases. Using paper-based systems makes this impossible, in that you can’t plan for purchases without accessing PO reports.
An efficient PO software could help you to plan your monthly purchases by:
- Allowing you to access PO reports faster.
- Allowing you to print PO reports in PDF formats.
3. It allows you to streamline workflows
When your company uses Excel spreadsheets or other manual systems, streamlining workflow becomes difficult. Your employee is likely to waste time on processing only one purchase order.
However, once you switch to automation, your company saves a considerable amount of time. Your employees would be able to load several purchase orders at the same time, all within minutes. This means they would be more productive than before! As we all know, a blend of productivity in a company is a recipe for more profit.
4. It helps you follow up on the past and due invoices
Nothing bogs down cashflow like the past and due invoices. The slower you collect these debts, the more cashflow problems persist. Using paper-based systems exacerbate this problem even more. This is because following up on late payments takes time as you’ll have to go through a pile of papers.
Using software to follow up on due invoices is dramatically easy. For example, when using Procurementexpress.com, a PO number is automatically created every time you load a purchase order. This PO number appears on the invoice. If you punch in this number, you’d quickly access PO reports and invoices associated with that number. In that way knowing which invoice was not paid becomes a lot easier.
5. It allows you to access purchase reports faster
As previously mentioned, if you don’t improve your company’s procurement process, you won’t access reports faster. Furthermore, accessing PO reports enables you to budget well. This is something you wouldn’t do effectively without the aid of Procurementexpress.com.
(There are companies that have discovered an efficient spend control tool in Procurementexpress.com, read about them here.) This efficient software allows marketing, sales, operations and any other departments to have different budgets with different approvers.
With Procurementexpress.com your staff will spend within budget. If they spend over budget, you and your executive team would get notifications and curb maverick spending early on.
Want to set up your budget like a pro? Sign up for a free trial today!