Intacct – Purchase System

Over the past few months, we at Faith Promise have been working on making our purchasing process more efficient and effective.  We have been using our accounting software, Intacct, to do this.  Here is what our purchase system will look like in a couple of weeks:

• Employees will be able to enter purchases over $200 as purchase requisitions and they will flow through an approval process electronically.  Approvers will be notified by e-mail when a requisition is awaiting their approval.  Once approved and the purchase is made, the employee will convert the purchase requisition to a purchase order.
• For purchases under $200, the employees will be able to enter then as purchase orders or credit card transactions, depending on the type of purchase.
• The finance office will match purchase orders to invoices and credit card transactions to statements.

This system will eliminate useless data entry and improve record keeping.  We will be able to report on different types of transactions.  The coolest part to me is that we have the ability to create different types of transactions for increased customization.  I have to say that I am extremely pleased with the Intacct system and I look forward to the value it will add to our organization.

Finance Office Improvement #1 – Purchasing

Last week I shared some of the tools we use in the finance office at Faith Promise Church.  Next I want to share some of my plans to improve the finance office in the future.  These will not necessarily fall into priority order, but improvement #1 is definitely priority #1.  A little less than 2 years ago I came to FPC from the Spallation Neutron Source project at Oak Ridge National Laboratory.  At SNS I negotiated and awarded contracts for equipment and services.  In this role, I learned a great deal about how a good purchasing process can save a substantial amount of money.  Here are a few ways a good purchasing system can save money and increase value:

• Competition.  When looking to make a purchase, considering multiple sources will create an atmosphere of competition.  In turn, suppliers will lower their prices or improve their offering.  This increases the value of what you can afford.  It is always good to get several offers for what you need to be sure you are paying the best price for the right solution.

• Purchase consolidation.  With a good purchasing system, information can reveal areas to increase purchasing power.  Identifying frequent purchases from the same vendor will help in purchasing larger quantities at lower prices.  In addition, it is easier to locate what companies products had previously been purchased from.

• Employee understanding.  When employees don’t understand the purchasing process it increases frustration and creates friction between the employees and the finance office.  With a good, clear purchasing process employees recognize the value and allow the finance office to assist them in making better purchasing decisions.

Purchasing is something I know can be improved in most organizations.  I have seen the significant cost savings that are accomplished through competition, consolidation of data, and employee understanding.  Moving forward, I want to improve the way we operate and provide the best possible support in allowing the various ministries of Faith Promise Church to make the most cost effective purchases.  I plan on doing this by creating a clear process, offering valuable support, and providing the necessary tools.