Competitive bidding is intended to ensure impartiality in buying decisions. We can create competitive bid templates and assist you in formalizing a competitive bidding process.Purchase Order Creation
We can create purchase orders for goods and services ordered and enter the purchase orders into the system for easy tracking. Typically, purchase orders go through an approval process which confirms the purchase is authorized by appropriate individuals. Purchase order approval is a simple way to gain oversight over what is being purchased for your company. This is a good control if there are multiple employees authorized to make purchases in your company.Vendor Payment
We'll enter vendor invoices into our system and match bills to the corresponding purchase order which allows for easy tracking of outstanding purchase orders. Additionally, matching purchase orders to the corresponding invoice provides confirmation the bill is for an authorized purchase prior to issuing payment.
We'll process payments and prepare the checks in the system which can then be emailed PDF or printed and delivered to your office where the appropriate individual will sign the checks as final authorization of payment. All checks will be sent by your company, we simply do all the prep work to make processing vendor payments as efficient as possible. Report Generation and Ratio Analysis
We will provide periodic reports highlighting vendor spend and also provide summary of payments made during the period. Good reports increases the transparency you have into your company's position and increased transparency provides more information which helps you make better business decisions.
Monitoring your payables and tracking outstanding invoices makes it easier for you to pay vendors on time. When payment is received timely, vendors are more likely to extend more favorable credit terms to your company. In the end the relationship grows in a positive direction. We'll provide the following reports on a monthly basis:
- A summary of dollars spent by vendor
- A summary of each vendor's account balance
- An Aging report which will highlight any past due balances
- Ad-hoc reports on a client by client basis.
In addition, we can perform ratio analysis which provides another method of monitoring your company's payable process. See below for a brief description of the two most commonly used payable ratios:
- Accounts payable turnover ratio determines how many times your company repays it's payables to creditors during the year.
- Days payable ratio shows how many days on average it takes your company to pay its accounts payable.
Ratio analysis can be compared to industry standards and is a quick way to determine if your collection policies are working effectively or not.