When it comes to spend management, often the biggest problem for property management companies is working out what they have spent, and what they are committed to spend. We’ll often find organisations with vast property portfolios manfully attempting to piece together information which is:
As you can imagine, piecing this information together is is often a very labour intensive and manual process, and won’t give you a true picture of spend and committed spend until weeks later.
Additionally, frustrated employees may resort to expensive, maverick purchasing to ‘get the job done’, making good governance and compliance difficult to enforce.
There is however, a solution. Putting a robust P2P solution in means you know with complete certainty at any point in time, what the full picture of spend is.
Say for example you were to raise a works order in your property management system. You would know the details of the tenant and the allocation of time and materials, but you wouldn’t have any visibility of your PO commitments. With a proper P2P system you can pull the works order in as a pre-approved and pre-receipted PO (as the work has already been done). The P2P system will let you know you are committed to spending X and you will at some point be getting an invoice. As such it becomes the master ledger for all committed spend.
Not only is this great for internal control, we see a lot of companies use this as a sales tool. Showing a prospective client that you will be able to tell them the spend committed on their behalf for an entire property portfolio at the click of a button (not 3 weeks later) has proven to be a very powerful way to earn business for many of our clients.
Easy online submission of purchase requests; making it quick and easy to find what’s needed
Automated account coding, budget checking and upfront approval that removes the downstream administrative tasks around invoice processing
Visibility and control of intended spend which improves commitment accounting and reporting