It was only when I had finished my accountancy training, left practice and had worked in industry for 2 years, that I fully understood the point of PO’s.

They might not be an exciting topic but they are the unsung heroes of the purchasing world.

I have so many conversations with accountants and advisers that say “my clients are too small for PO’s”. Sure, they are possibly below the audit threshold, but unless they are an owner managed business, how do they control business spend?

We have more customers than you would think, with 25 or less employees using PO’s. Why.

Because the best way to control business costs, is to get approval *before* you spend. When the invoice arrives it’s too late.

It’s like that internal check I do with myself before buying another new pair of shoes.

• • Do I need them?
  • Can I afford them?
  • Will I survive if I don’t buy them?

I usually buy them anyway, but it’s my money and I’ve approved the spend. Within businesses, these approvals usually fall to multiple staff members.

Have you considered using or suggesting PO’s to smaller businesses?