How Procurement And Finance Can Work Together To Bring Your Business To The Next Level

How Procurement And Finance Can Work Together To Bring Your Business To The Next Level


There’s a lot that can be done to improve the processes in your business so that your business can perform. This includes the use of AP automation software and other innovations that will allow your company to work a lot better.

One of the essential relationships in your business is procurement and finance. Procurement is the department that gets your company the stuff that it needs to operate. This department is what usually spends a lot of your company funds. Finance is the department in charge of ensuring that you know where all your money goes to – it also approves the purchases that the procurement department does.

If these two departments work together, they would be able to have a smooth partnership that can mean improved performance for your company.

Better Integration

One of the problems that many businesses face is that sometimes procurement and finance don’t know what each other is doing. Delays in communication can make it hard for you to get something done. This is why procurement and finance should come together regularly to know what each other thinks. For example, the finance department should have influence on some of the procurement protocols that procurement has. This should make it easier for procurement to get things done and can smooth out a lot of the delays and troubles faced by the procurement department.

Automation

AP automation software can help streamline a lot of the processes involved between finance and procurement. With the right software, procurement doesn’t need to call up finance every other day asking for updates, while finance doesn’t need to badger procurement about submitting invoices. All of it is done automatically and quickly by the software, starting with approvals to the receipts for purchases. This makes it seem like procurement and finance are just a single department – but they each still retain their independence.

Benefits To Better Integration

There are several benefits to having a closer working relationship between the two departments:

Better procurement policies. With the finance department working with your procurement, you should be able to have protocols that are more efficient for your company. There won’t be anymore buying too much and your purchases will be approved a lot more quickly.

Better adherence. Adherence to protocols is also a lot easier. Your procurement will remember the protocols and you won’t have any problems between any problems between the two departments.

More Data. There is a lot of information that integration will be able to gather. Your company’s spending habits will be automatically recorded on the software that you use for your AP automation process. This data can be used to improve your company’s performance.

Lower Costs. Another big advantage is that integration allows your company to get better purchases. Sometimes, if you can clear your AP early, you can even ask for a discount from your suppliers.

Overall, when your finance and procurement department work closely together, your company will be able to come out of it on top.

Nexus is an AP automation software that is perfect for your real estate business. From ordering to invoice processing to payments, we got all bases covered. Contact us today for more info!

Category Business

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