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📢 Many companies struggle with managing purchase orders manually. This can cause errors, delays, and increased expenses. How can businesses overcome these challenges and ensure their procurement process is a smooth journey? The answer lies in adopting the right purchase order system. 💡 We explore some key features to look for in a Purchase Order System in today's blog. 📑 Read more: https://lnkd.in/ej85XmzJ . #B2BE #PO #purchaseorder #purchaseordersystem #accountspayable

Leveraging Ramp for purchasing control management has had a positive impact on our business. Some of the features available include: 1. Automated Approval Workflows: We implemented Ramp's customizable approval processes, ensuring every purchase aligns with our budget and policies. This eliminated unauthorized spending and reduced frivolous purchases. 2. Card-Level Limits: By setting specific spending limits on Ramp cards for each department, we gained granular control over expenses. This prevented budget overruns and encouraged more mindful spending. 3. Category Restrictions: We leveraged Ramp's 40+ spending categories to block unnecessary purchases and guide employees towards approved vendors, resulting in significant savings. 4. Real-Time Spend Visibility: Ramp's dashboard provided instant insights into our spending patterns, allowing us to identify and address cost-saving opportunities quickly. 5. Vendor Management: Using Ramp's contract benchmarking feature, we renegotiated several contracts, securing better rates for our most-used services. 6. Automated Expense Reporting: By eliminating manual expense reports, we saved countless hours of employee time and reduced errors in reimbursement. The results? A 25% reduction in overall expenses and a more financially disciplined organization. To learn more, visit: https://lnkd.in/e3jC8a39 Have you tried Ramp or similar spend management tools? #Ramp

How to do Inventory Audit ? ~An inventory audit is defined as the process of checking a company’s actual inventory levels against their Books to ensure accurate inventory accounting. But what is the need of doing it? ~To identify any problems with the inventory storage and accounting methods a company is using. Here are the 7 inventory audit procedures- 1. Cutoff analysis: It means pausing the operations at the time of physical count to ensure nothing is being unhandled and goes unaccounted . 2. Physical inventory count: Physical inventory counts are done to make sure that your system’s numbers match up with your physical stock. 3. Analytical Procedures: To know the previous year trends we use comparing gross margins, inventory turnover ratio, or per unit costs of inventory with previous years. 4. Freight cost analysis: Freight cost analysis determines the cost of getting inventory from one place to another, freight costs and tracking the time between the date of shipment and the date of receipt. 5. Overhead analysis: Overhead analysis includes analyzing the indirect costs of the business and overhead costs that may be included in the costs of inventory. Rent, utilities, and other costs can be recorded as part of inventory costs in some cases. 6. Finished goods cost analysis: Finished goods cost analysis is the process that verifies that the recorded costs of produced goods are accurate. It considers direct materials, direct labor, and manufacturing overheads. 7. Cycle Counting: Cycle counting is a frequent, systematic count of different areas of inventory in rotation. This method enables ongoing validation of inventory systems and minimizes operational disruption compared to full-scale physical inventory counts. An inventory audit helps to find the risk of theft, spoilage, or problems with purchasing procedures. It’s also a requirement for businesses under GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards).

Mastering IAS 2 Inventories: A Guide to Effective Inventory Management In the fast-paced world of business, effective inventory management is crucial for ensuring sustainable growth and profitability. International Accounting Standard 2 (IAS 2) provides guidance on the accounting treatment of inventories, outlining the principles that organizations must follow when valuing and recognizing inventory in their financial statements. IAS 2 defines inventories as assets that are held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process. Properly managing inventories is essential for optimizing working capital, maximizing operational efficiency, and meeting customer demand. Here are some key points to keep in mind when it comes to mastering IAS 2 Inventories: 1. Classification of Inventories: IAS 2 requires inventories to be classified as raw materials, work in progress, or finished goods. Each category has its own valuation method, and it is important to correctly classify inventories to ensure accurate financial reporting. 2. Cost Formulas: The standard allows for different cost formulas to be used for valuing inventories, such as First-In-First-Out (FIFO), Weighted Average Cost, or Specific Identification. Organizations must choose a cost formula that best reflects the flow of costs in their specific circumstances. 3. Net Realizable Value: IAS 2 specifies that inventories should be valued at the lower of cost and net realizable value. This means that if the net realizable value of inventory is lower than its cost, a write-down is required to reflect the decline in value. 4. Consistency and Comparability: Consistency in applying inventory valuation methods is essential for ensuring comparability of financial statements over time. Changes in valuation methods should be disclosed and explained to maintain transparency. 5. Disclosure Requirements: IAS 2 sets out specific disclosure requirements related to inventories, such as the accounting policies adopted, the carrying amount of inventories, and any write-downs recognized. Providing clear and transparent information in the financial statements is crucial for stakeholders to make informed decisions. By mastering the principles of IAS 2 and implementing sound inventory management practices, organizations can enhance their financial reporting accuracy, improve decision-making, and drive sustainable business growth. Effective inventory management not only impacts the bottom line but also plays a vital role in ensuring operational efficiency and customer satisfaction. In conclusion, understanding and applying the guidelines outlined in IAS 2 can help organizations streamline their inventory management processes, mitigate risks, and unlock value across the supply chain and set a solid foundation for success in today's competitive market landscape.

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Not just a numbers.

How to Procure and Implement Inventory Management Systems: A Comprehensive Guide https://lnkd.in/g6EjnVXS

Explore "The Ultimate Guide to Inventory Cost Accounting: Expert Tips and Proven Methods" with ePROMIS. Learn key strategies for accurately tracking inventory costs, from FIFO and LIFO methods to weighted average cost. Discover expert tips to improve cost control, enhance profitability, and streamline operations. Equip your business with the tools needed to optimize inventory management and drive financial success. https://lnkd.in/dmRG5t6A #ePROMIS #InventoryCostAccounting #CostControl #FinancialSuccess #InventoryManagement #AccountingMethods #BusinessGrowth #Profitability #ConstructionTech #ConstructionERP #CloudERP #ConstructionSolutions #SaaSSolution #MobileERP #MobileApp #CloudERPSoftware #EnterpriseSaaSSolution #SaaSERP #SaaSHCM #CloudHCM #SaaSCRM #SaaSHCM #AIBasedBusinessManagement 

Faster than you realize, the pace of growth outstrips your team's ability to keep up. Automating simple manual procurement tasks not only saves time and money, but frees your team to focus on problems that actually make an impact. Increased accuracy, reduced risk, faster processing, and optimized costs are just some of the benefits of automation. Check out this blog to learn five procurement processes your business should automate to take control over your supply chain and optimize every step of the process: https://hubs.la/Q02lnwzJ0 #procurementautomation #procurementprocess #procurementtools