5 Ways To Streamline Purchase Order Processing With Accounting Software
Purchase orders are integral to your business and, in fact, depending on the size of your projects, you may be dealing with hundreds of different POs from multiple vendors at one time. You may not realize how much time the purchase order process is consuming, but there are many steps involved from creation through approvals to submission. Anything you can do to streamline the process will save time that could be better spent ensuring your projects run smoothly and your business is growing. Improving your PO process can result in:
- Quicker project start-ups
- Faster response times to changes
- Real-time visibility into materials delivery and inventory
- Improved decision making
- Easier reconciliation of supply problems/disputes
- Ultimately, higher profits
Fortunately, there are multiple options for streamlining this key process. Here are some purchase order solutions worth considering.
1. Escape the Paper Pile
Home building is a document-intensive business, and moving from paper-based to digital processes has proven benefits. Going digital simplifies the process of locating and editing purchase orders, reduces the chances of document duplication or omission, eliminates many opportunities for human error, reduces fraud and allows for time-saving automation of repetitive tasks.
2. Enable Centralized Access
Purchase orders go through many hands over their lifespan — your office staff, project managers, contractors, suppliers, vendors and even homeowners. When there are questions or changes, everyone involved needs to have access to the most updated documents, preferably in real-time. Managing your POs online is the easiest way to make this happen.
3. Set Up an Authorization Chain
Getting sign-offs from the proper people before a purchase order is issued can reduce confusion, fraud, delays and other supply-chain issues down the line. You should have an established procedure for obtaining authorization from specified team members for different PO types and/or spending levels.
4. Link Purchase Orders to Budgets
Linking your purchase orders to the relevant job budgets can be a profit-saver. Margins are tight in the residential construction business, and going just a little over budget can challenge your cash flow and profitability. Linking this data can let you quickly see when jobs are in danger of going over budget and enable you to take proactive steps to correct the problem and balance out costs.
5. Utilize Residential Construction Accounting Software
Taking your POs online is helpful, but consider taking the next step. Using accounting software designed specifically for home builders can:
- Improve the overall visibility of your process by gathering all relevant data on one accessible platform
- Make the inevitable changes in projects quicker and smoother
- Automate repetitive parts of the process — approvals and payments, for example — for even more efficiency
- Make it easy to link purchase orders to job budgets and even set up alerts to inform you when certain budget milestones are reached
Streamline Your Purchase Orders With Hyphen’s BRIX Software
BRIX is more than a residential construction ERP software with accounting. It’s a fully integrated enterprise resource platform that gives you access to the most efficient solutions available for any size home builder. Already used for many homes across the U.S. each year, BRIX lets you control purchasing, production, accounting, costs, payroll and reporting all in one streamlined cloud-based construction program.
Interested in learning more about Hyphen’s BRIX software? For quick tips and tricks to support your sales team’s success and improve client management, watch our on-demand mini webinar. For a more comprehensive overview and demo of one of the leading Enterprise Resource Management Platforms in North America with accounting, allowing you to manage your back-office needs seamlessly all in one place, watch our webinar to show you how it can help you to manage your teams from Sales all the way to Production
You can also schedule a demo to talk to a Hyphen Solutions expert about how adopting BRIX as your residential construction management software will transform the way your business operates.