Whether you are running a small business or an enterprise, Purchase Orders are a crucial part of accounting. If you wonder why you need it for small business, here is the reason why you need Purchase Order.
1. Purchase Order (PO) puts an end to multiple documents, one for price, one for quantity and one later for the delivery address. Capture all these details on a single document and email it to your vendor.
2. You will agree with us that when you have to do for managing purchases on a paper there is lot of amount of paperwork you need to manage. With a purchasing system in place you can easily get rid of all the notebooks and sheaves of paper you use to maintain records of your purchases.
3. You will agree that when you ask for 5 white-boards and 30 markers and vendor sends you 20 markers “as it was agreed on the call” which you never did or remember. You may have agreed on a certain price but vendor charged you more, “since the prices have gone up”. Does this sound familiar? This never happens again with Purchase Order.
4. You can order multiple items, multiple times a day and when you receive the products ordered, use the PO number to search and track it in on time. Also with PO, you can link the order number as reference to your bills to know what you have paid for.
5. Any purchase is an expense incurred to your business. With GST directives in place you will need to track and share it in the form of GSTR-2 while filling your returns. With PO, all your purchases are automatically accounted for and reflects in your Dwike Invoice.
PO needs to be issued not just to buy small items but also raw materials. It is a legal document that binds you and tells vendor what is needed, when its needed and at what price it needs to be delivered to you.
Use Purchase Orders and run your business in the effortless way.