How to Choose the Right Purchase Order Software?

Who needs a PO software system?

Any business with regular procurement activity can benefit from using purchase order software. This includes small businesses, large enterprises, non-profit organisations, and government agencies.

For SMEs, a PO system helps forecast demand and manage orders based on historical data recommendations.

On the other hand, larger organisations can use PO software to manage complex purchasing processes. To automate tasks, most companies can integrate their PO system with their accounting system.

Large-scale buyers in manufacturing, pharmaceutical, and retail industries will find PO systems very useful.

Other businesses dealing with multiple vendors, operating across various locations, or managing substantial transaction volumes also can use PO software to maintain efficiency and accuracy in their procurement processes.

10 key considerations for choosing PO software

When searching for a purchase order (PO) system, consider factors like:

• The system's ability to integrate with your existing software
• The potential for scalability as your business grows
• The level of customisation it provides
• The cost of the solution and expected return

Below we dive into the 10 most essential factors you need to pay close attention to while doing your PO system research:

1. User-friendliness

Assess the software's ease of use to ensure that your team can quickly adapt to the new system without extensive training.

2. Integration capabilities

Evaluate whether the software integrates seamlessly with your existing systems and tools, such as accounting software, ERP systems, and eCommerce platforms.

3. Scalability

Determine the scalability of the system, whether it can grow with your business, and accommodate increased transaction volumes, purchase order forms and additional users without compromising performance.

4. Customisation options

Ensure the system has customisation options, templates, dashboards, and designs that can be tailored to fit your business's specific needs and processes.

5. Pricing

Evaluate the balance between cost and the features. Simple options can lack the advanced features of more comprehensive systems that offer scalability, integration, and greater support.

6. Alignment with organisational needs

Determine if the software system aligns with your organisation’s needs such as your company’s size, complexity of procurement processes, culture, and long-term goals.

7. Vendor reputation

Do your research. Establish the vendor's track record for reliability, support, performance, and commitment to innovation. Access Financials is trusted by over 4000 organisations globally, ranking highly on customer reviews.

8. Customer support

Consider the level of customer support offered and whether it includes 24/7 customer assistance to help with any queries or issues that may arise.

9. Security features

Ensure the software vendor has robust policies and programs to protect your data. This should include vigorous identity and access management protocols to safeguard sensitive data, regular security audits, secure design principles, threat modelling, and secure coding practices.

10. Ease of implementation

Consider the ease of implementation, as this will greatly affect the adoption and efficiency of the system in your procurement processes.

Different types of Purchase Order Software

When choosing purchase order software, you should compare and evaluate the various options on the market. Consider the advantages and disadvantages of each and align your decision with the financial constraints and requirements of your business.

Access Financials

• What are the main features?

Scalability, fiscal management and reporting, project accounting, budgeting, forecasting, invoicing, billing, and multi-currency support. PO software comes as part of Access’s accounting software package, this integration facilitates seamless procurement and financial management.

• Are there any limitations?

Some customisations may be necessary.

• Who is it best for?

Midsize / Large Businesses

Coupa

• What are the main features?

AI-driven automation for source-to-pay processes, treasury management for financial decision-making, and supply chain design and planning.

• Are there any limitations?

The interface isn’t widely seen as user-friendly, with limited supplier network and management features.

• Who is it best for?

Insurance, technology, and manufacturing

Business Central

• What are the main features?

Connects finance, sales, service, and operations, streamlining processes with AI and automated workflows.

• Are there any limitations?

Can be complex to set up, and the pricing model may affect its affordability and accessibility.

• Who is it best for?

Small to midsize businesses.

Dynamics 365

• What are the main features?

Flexible licensing options, scalable architecture, customisation, integration, vendor, and purchase order management.

• Are there any limitations?

The interface can be complex, and implementation costs and monthly user fees may be a consideration.

• Who is it best for?

Large enterprises and SMEs

Sage Intacct

• What are the main features?

Robust invoicing and efficient reporting, AI-powered general ledger, revenue, and billing process automation.

• Are there any limitations?

Customisation options may be limited, the cost can be a barrier for smaller organisations.

• Who is it best for?

Midsize and fast-growing SMEs

Real-world examples

Businesses across various sectors have implemented PO software to streamline their procurement processes, overcome challenges, improve efficiency, enhance visibility, and reduce costs.

How to choose purchase order software that fits your organisational needs will ultimately come down to those specific needs. Here we offer some real-world examples of businesses that have implemented and benefited from PO software:

• Samsonite

Samsonite, the renowned luggage manufacturer, leveraged PO software to streamline its procurement processes, leading to significant tangible benefits. By automating the purchase order cycle, the company has minimised manual errors and reduced processing times, which in turn has led to cost savings and improved operational efficiency.

The integration of PO software has also enhanced visibility into spending and vendor performance, enabling better decision-making and more strategic sourcing. These improvements have not only bolstered Samsonite's supply chain resilience but also contributed to its commitment to sustainability by reducing paper usage.

• General Electric

GE has leveraged PO software to digitise its procurement cycle, streamline operations and reduce manual data entry. This digitisation has led to more accurate production data management and traceability, greater asset reliability, lower operating costs, and reduced risk.

Efficient electronic submission of invoices and enhanced visibility into payment details have enabled greater opportunities for suppliers to collaborate on POs, contributing to a more robust and responsive supply chain. These advancements in PO management have contributed to GE's operational excellence and financial performance.

By adopting PO software, organisations can overcome procurement challenges and achieve remarkable efficiency and growth. The transformative impact of PO software is evident in the increased efficiency, cost savings, and supply chain agility it brings to businesses ready to embrace digital solutions for procurement challenges.

FAQs on choosing PO software

In this section, we're equipping you with all the answers you need regarding how to choose and implement a PO system that aligns with your business goals.

Will the software adapt to my changing business needs?

PO software is designed for scalability to meet the evolving needs of your business, adjusting to accommodate new processes and workflows, as you grow.

What integration capabilities should I look for in PO software?

Consider integration capabilities that streamline your procurement processes, with features that allow for seamless communication between different software systems, enhancing data flow and system interoperability.

Can PO software automate my entire purchase order process?

Software significantly streamlines the entire PO process automating tasks, providing reliable and accurate documented agreements, and facilitating easy creation and payment of invoices. Book a demo with our team today and find out how Purchase Order automation software works.

Does it offer customisable approval workflows?

Yes, the software can offer customisable approval workflows, allowing you to create tailored approval processes that align with internal controls and your spending policies.

Does it offer reporting and analytics capabilities to track my spending?

Robust PO software provides reporting and analytics to help improve your budget management.

Can small businesses benefit from purchase order software, or is it more suitable for larger enterprises?

Purchase order software can be highly beneficial for small businesses, offering a range of advantages such as process automation, spending control, and improved accuracy in transactions.

How can I ensure user adoption and minimise resistance to change?

Develop a comprehensive strategy that addresses the core needs and concerns of the users. Understand their pain points, preferences, and potential reasons for resistance and provide adequate training and support.

How to create a purchase order?

It's easier than ever to create a purchase order. The process involves logging into your procurement system or integrated finance management system, filling in vendor and item details, reviewing, and saving the order with a unique number.

Generating the purchase order requires selecting the order, choosing a format, and then generating or printing it.

Finally, raising the purchase order involves sending the generated order to the vendor and ensuring they acknowledge receipt and confirm the details.

The best Purchase Order Software for you

If you are choosing purchase order software to enhance your purchasing process, the purchase order feature within Access Financials accounting software may be a great fit for your organisation.

Implement a purchase order system with Access Finance

Access's accounting software package is designed to streamline operations by offering a comprehensive suite of tools, including Purchase Order software. This integration allows you to manage your purchasing processes and accounting needs with greater efficiency and accuracy.

With features like multi-currency support, automated bank reconciliation, and real-time financial reporting, Access Financials can adapt to complex business structures and grow alongside your business. Implementing a purchase order system with Access Finance will bring a host of benefits to your business.

It offers you all the benefits of a streamlined procure-to-pay process, allowing for better control and visibility over financial transactions. The security features necessary to ensure your sensitive data is protected and world class ongoing support.

Building automated workflows saves you time and reduces errors in invoice processing, which can improve your supplier relationships and cash flow management. Our accounting system has the flexibility to handle multiple currencies and automatic exchange rate conversions to minimise errors and simplify international purchase order transactions.