In any company, there will always be a need for goods & services. To prevent fraud, a purchase request is required to procure goods or services from vendors. Automating purchase requisition helps you to streamline the entire process of purchase requisition and helps in preventing fraud.
In our previous blog, we discussed the importance of purchase requisition. In this blog, we will uncover the reasons to automate your purchase requisition process and the benefits you get from it.
A traditional purchasing method is always laborious and involves maintaining a stack of papers. It takes a longer time to get simple approval. Some of the common demerits involved in a traditional purchase requisition process are:
When any purchase requisition is created, it has to go through an approval process. But there are chances that it might be delayed as there is no proper structure put in place for faster approval.
Lack Of Policy Compliance
Even though organizations do have a purchasing policy, it may not be enforced properly due to lack of supportive systems. This leads to the furor over organizational budgetary restrictions and losing visibility on total spending.
Any purchase requisition processed without a proper validation could also result in the duplicate ordering of a product, unwanted purchases allowing organizations to spend more than to cut costs.
Why Automate The Purchase Requisition Process?
One of the important aspects of digitizing the purchase requisition process is to help businesses to cut costs and be more efficient. A purchase requisition software helps to simplify the entire process of purchase requests and streamlines the way goods & services are procured in an organization.
Faster Approval Process
With automation software, the turnaround time can be very fast. You can set up a custom approval workflow and notify the approvers through email. The system can also be configured to automate the notification reminder to approve or disapprove any pending requests.
Automate Repetitive Tasks
Only those requests that have been correctly approved can be processed to the procurement teams, while the disapproved ones are tracked and notify the requester automatically as to why it was rejected. Automated status updates throughout the request and approval process keep the team well informed about the happenings.
With a powerful policy compliant engine, you can set up all the policies according to your organizational terms. Automated notifications can be sent if any policy violation takes place. Finance teams can gain more confidence in stronger internal controls and automated, audit-ready processes that improve productivity and standardization
Gain total visibility on business spends with powerful analytics. The dynamic dashboard helps you make quicker and better data-driven decisions. Run real-time reports with deep and meaningful insights. Create customized reports for a better understanding of your business expenses.
How To Automate The Purchase Requisition Process?
Finly, centralized procurement system can streamline and automate the purchase requisition process. The robust system will guide from an employee raising a request for a purchase to the type of product being purchased, getting approvals, adding vendor details into the system, managing multiple POs, sales orders, invoices, etc. It also helps in sending an automated notification to all stakeholders involved in the transaction regarding payment, product delivery and hence improving visibility, control and auditability of any purchase being made.
The benefits of Finly’s e-procurement system are:
An automated e-procurement system, allows you to take control of all the purchase related aspects through a single software or via a mobile app, helping you to formalize rate contracts with your vendor, make payments, and process invoices, etc.
Greater Spending Visibility
The analytics provided by the automated e-procurement system helps the finance team to understand where exactly the spending is happening. Furthermore, they can streamline and curb the unnecessary expenses through the insights and analytics available in the dashboard.
Control your business spending by enforcing a strict budgetary policy on each of the purchase requests raised. In case of a policy violation, notify the employee via email. You can also set up a budget limit on each of the users and track the number of requests being raised. Upon reaching the limit, the system can automatically block the user from raising any more requests.
Timely financial reports identify the business spending and keep a tab on the company’s finances. Automating these reports will help in time savings, cost savings, risk reduction, improved efficiency, increased regulatory compliance, audit preparation, reduced turnaround time and cost effectiveness and always ready for audit.
Automate the digital bookkeeping process by eliminating the error-prone manual process of entering data into your accounting software. Integrate your accounting software like Tally, Quickbooks, Zoho, SAP, etc. with the platform and ensure accurate entry for the GL record including the associated amount, account, date, description, transaction number, and type for each transaction.
To maintain a hard-copy of your financial reports can be tedious and it possesses the risk of having your records lost or stolen. Moving your reporting structure on to a digital format can help you keep your financial information organized and also help you retrieve important information with ease.
You can split payments and make vendor payouts, manage all your marketplace payouts to the vendor’s bank account and much more. Through powerful API banking, you can also schedule these payments. Set automated reminder notification through email / SMS to notify employees or vendors or critical activities.
The benefits that the procurement and finance teams see after moving to FinlyFinance are the streamlined processes of purchase requisition, total control on budget spend, increased productivity, effective collaboration, and most importantly, building a positive spend culture in the organization.