SMBs typically have limited resources and a large amount of work to complete. Manually managing the purchase order process places additional strain on team members and diverts their attention away from their primary responsibilities. With a small business purchase order system, you can automate the entire process, improve efficiency, and reduce the chances of errors caused by manual entry. While choosing the right purchase order system for a small business may appear to be a daunting task, it all boils down to what your business requires.
What Is a Purchase Order System?
Purchase order software (also known as PO software) assists in the creation of financial documents issued to vendors when purchasing supplies or services. Purchase orders typically include product type, quantity, and pricing information, as well as other pertinent information.
Furthermore, purchase order management software is an essential component of any accounts payable process. Purchase order systems can help automate the creation of purchase orders, saving time when stock levels are running low by alerting your team before a shortage occurs. As a result, purchase order software works in tandem with inventory management software.
Purchasing workflows used to be very manual, especially when it came to collecting signatures for approval. PO software can also help to speed up the approval and requisitioning processes. When someone in your company wants to make a purchase, they must first go through the approval process:
- A purchase request is submitted by an employee to the appropriate approval workflow.
- The request is routed up the chain to the appropriate management personnel.
- Management assesses the need and current budget allocations.
- The request is either approved or denied by the decision-maker.
Best Purchase Order Systems For Small Businesses
What is the best small business purchase order system? We conducted research to identify a few options that are consistently affordable, simple to use, and simple to set up. They include;
#1. Coupa
Coupa is a complete spend management program that includes purchase orders and purchase requisitions. The software can be as simple as a tool for creating purchase orders or as complex as handling everything related to your purchasing process.
Depending on your needs, you can purchase Procure for e-procurement, Invoice for AP automation, Expense for tracking travel/employee expenses, or Pay for B2B payments. Coupa is one of the most versatile purchase order software options available because it can be fully integrated to operate as a complete spend management platform.
#2. QuickBooks Professional
Creating a purchase order in QuickBooks Pro’s accounts payable workflow is simple. QuickBooks has long been recognized as one of the leading small business accounting solutions, offering a general ledger with accounts payable and receivable. The ability to create a purchase order is part of the account payables process.
Quickbooks can help you keep track of what you order and receive, plan your expenses, and manage your money wisely. QuickBooks will be an excellent choice for small businesses looking for a purchase order system with full accounting capabilities due to the combination of these factors and a strong audit trail.
#3. Sage Intacct
Growing businesses looking to upgrade to a mid-sized accounting solution with strong purchasing functionality should consider Sage Intacct. Using dashboards and reporting tools, the purchasing module automates purchasing transactions, allowing your staff to monitor merchandise and service acquisitions in real-time.
Sage Intacct allows you to implement best purchasing practices and create custom templates for requisitions, requests for quotations, purchase orders, and adjustments. It also allows you to keep track of your vendors’ prices in a database. When you pay a price on a purchase order, your vendor costs are automatically updated for future POs.
#4. Xero
Xero is online accounting software for small businesses and startups. This cloud-based platform is known for its ease of use and is accessible at any time and from any location. Your cash flow can even be viewed in real-time! With Xero, you can pay bills, claim expenses, and secure bank connections.
#5. SpendMap
SpendMap’s Free-Procurement Project is a true free purchase order system for small businesses. It does not offer limited functionality or a free trial of its paid version. SpendMap’s Free-Procurement Project solution allows your business to automate the purchase order process with an unlimited number of POs.
#6. Zoho Inventory
Zoho Inventory is a free application in the Zoho suite. The Purchase Order Generator, which is included in Zoho Inventory, can generate simple purchase orders with editable fields. You can enter your billing address, your vendor’s address, a PO number, and even descriptions of the purchased items.
While Zoho Inventory is free to use, it is an inventory management solution and may not be the best choice for all of your purchasing processes. It will mostly serve as a simple tool for quickly creating a purchase order, but it will not provide the level of automation, collaboration, or customization that a paid version would. With the free version, you are also limited to 20 orders per month.
#7. Paramount WorkPlace
Purchase orders can be easily created and managed with Paramount WorkPlace, a procurement management solution. It gives employees and management the tools they need to simplify the PO approval process and manage their spending more effectively.
Its modern user interface is simple to implement and can be used by employees of all skill levels across the organization. Users can automatically route approved requisition requests for PO creation, and detailed audit logs are generated.
For a better user experience, Paramount Workplace also supports seamless real-time integration with ERP applications such as Microsoft Dynamics, Acumatica, Blackbaud, Sage-ERP, Sage Intacct, and Netsuite, among many others.
#8. KissFlow
KissFlow is a fantastic purchase requisition solution. One reason for this is its powerful PO processing feature. The software offers users a paperless solution that allows for the efficient execution and management of all PO documentation without the need for unnecessary printouts.
Users can use rule-based customizable workflows to ensure that the POs they create adhere to established policies. This ensures that there are no mistakes in their creation. It also offers a highly adaptable approach to unregistered vendor enrollment.
Management also gains access to real-time actionable insights that can be used to reduce unnecessary spending and save money on procurement.
#9. Purchase Control
Planergy’s Purchase Control offers its customers a simple purchase order processing system that is ideal for small businesses. It provides a competent cloud-based PO management system that is best suited to small-scale businesses.
Users can use the software to create and manage purchase orders and requests, as well as manage spending, process invoices, and streamline the entire PO process. It has a strong reporting metric that aims to give managers the information they need to improve performance.
#10. O2b Technologies Inc.
O2b Technologies offers purchase management software that significantly streamlines the PO process. It significantly streamlines and automates the creation, management, and tracking of POs and purchase requests, making the process appear less chaotic.
It focuses on creating agile POs that users can execute with a few clicks. In addition to PO processing, the software allows for seamless integration with other useful applications. These integrations make vendor relationship management, accounting, customer relationship management, and inventory management more efficient.
Furthermore, the software supports single-level and multi-level PO authorization workflows, as well as a comprehensive audit trail mechanism for keeping track of all approved and rejected POs.
#11. Bellwether
Bellwether is widely regarded as having one of the best e-procurement solutions in the industry. One of the reasons it has received such high praise is for its outstanding PO processing capabilities. The tool is ideal for businesses that need to create 50-1000 documents per month.
It offers two distinct plans that cater to small and large or mid-sized businesses separately. It focuses on reducing paperwork time by digitizing the PO process from start to finish.
Users can customize their workflows and keep track of PO approvals and rejections without difficulty. In addition, the software is entirely web-based.
#12. SalesAttach
Intuit QuickBooks is one of the world’s most popular accounting software programs. However, few people are aware of its remarkable integration capabilities with other PO processing tools. SalesAttach is a software program that integrates with the QuickBooks accounting system to reduce data entry errors in financial records.
The app keeps track of everything related to your purchase orders, including vendor information, order costs, and the number of orders placed. The software is also extremely useful for inventory management.
SalesAttach data can be used to compare different vendor information and get the best deal for your money.
Should A Small Business Use Purchase Orders?
Purchase orders are an essential component of any business. They enable you to enter into legally binding contracts with vendors via legal documents. This allows you to ensure the accuracy of your ordering systems while also keeping your business processes on time and within budget.
Does QuickBooks Offer A Purchase Order System?
Purchase orders for recurring purchases can be easily scheduled in QuickBooks. Once an order is complete, QuickBooks automatically copies the items, quantities, and rates from your purchase order and turns it into a bill.
How Do You Create A Po System?
Apply online: Find, reserve, and pay for a box at a Post Office near you. Pick up your keys in person: Take your completed application and 2 forms of ID to the Post Office (where your box is) to get your keys. Get mail at your convenience: Flexible hours allow you to check your PO Box on your schedule.
How Much Is A Po System?
According to studies conducted by various organizations, the average PO processing cost ranges between $50 and $1000. Let’s take a look at some of the metrics.
How Do I Manage Purchase Orders In Excel?
If you’d rather work with a spreadsheet, you can create a purchase order in Microsoft Excel using the same method. Open a new Excel document, then click the icon in the upper left corner of the screen. Select “new” and “Purchase Orders” from the drop-down menus.
How Much Does A Po Box Cost A Month
Find a PO Box Near You
Depending on your location, you can get a new PO Box at a Post Office for as little as $4.33 per month. Use your existing or new USPS.com account to reserve a box.
Benefits of Using a Purchase Order System for a Small Business
Reduced reliance on manual intervention
By digitizing and automating the purchase order process, you can eliminate manual intervention from your team, saving time and reducing errors caused by manual data entry.
Saved operational costs
You can speed up the entire process and save up to 45-65 percent on operational costs for your business by using cloud-based purchase order systems.
Transparency
By viewing the status of all open POs, you can ensure complete transparency throughout the entire purchase order process and ensure that everything is on track.
Conclusion
A business cannot hope to thrive if its procurement system is inefficient and constantly in disarray. This is why a competent small business purchase order system that automates the entire process across the organization is critical.
A good PO management software will aid in the error-free creation of POs, the efficient tracking of purchases, the improvement of vendor relationships, and the timely fulfillment of orders.
As for our recommendation, if you’re looking for a low-business, user-friendly Purchase order automation system for small businesses, look no further than Paramount WorkPlace.
Frequently Asked Questions
Are purchase orders necessary for small business?
Purchase orders are an essential component of any business. They enable you to enter into legally binding contracts with vendors via legal documents. This allows you to ensure the accuracy of your ordering systems while also keeping your business processes on time and within budget.
What is a good purchase order system?
Precoro is the best purchase order software for the majority of people. Purchase order software ensures that your business gets the inventory it requires from suppliers quickly and easily. It simplifies the procurement process, allowing you to rest assured that your business will receive the products it requires later.
Do businesses still use purchase orders?
Purchase orders are an essential part of any business. Purchase orders are a common occurrence in business, whether they are received from customers, sent to suppliers, or used internally between departments within the same company.
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