How a purchase requisition helps you track business expenses

In government organizations, there’s a clear chain of command. Usually, officers or elected politicians are the people in charge, and below them are employees who work for them or in their department. This structure is crucial, as it clearly defines roles and responsibilities so everyone knows what they’re supposed to do.

Business is no different. A well-run company is one in which everyone understands their role, who they report to, and where to send their work for approval.

This is especially important when it comes to purchasing. Your company is always going to need certain equipment or materials to run effectively — from raw materials to make products to printer paper to take care of basic office tasks.

That’s why creating internal processes to define exactly who can make purchases, what supplies you need, and how much money you’ll need to buy them is an important part of keeping your business organized.

That’s where a purchase requisition comes in. This internal document details purchase requests from an employee or department and travels throughout an organization in an approval workflow, ensuring that every relevant department can review where the company is spending money.

The benefits of using purchase requisitions

Purchase requisitions are precursors to purchase orders sent to vendors and suppliers, and they help business owners effectively take stock of supplies and track expenses. Here’s how they can keep your company efficient.

Ensure detailed records

A purchase requisition is an important part of procurement, the process by which a business obtains goods or services for its operations. Properly filing purchase requisitions shows you how many supplies you need, how often you need to replenish them, and how much they cost.

This knowledge comes with a few perks. First, it’s always good to have detailed notes regarding where your company’s money is going and how much inventory you have. It also keeps employees accountable.

Your business shouldn’t treat purchasing casually — after all, there’s a reason you create a budget at the beginning of the year. Without proper expense tracking, procurement can easily veer off course and mess with your end-of-year projections.

A purchase requisition paper trail keeps purchases transparent. If you make sure your team accounts for each purchase and multiple managers approve them, you’re going to be more organized. By understanding where your money is going and why, you’ll be able to cut down on unnecessary expenses and possibly save some cash.

Establish better communication

Holding employees accountable for charting their purchases and supply requests is just good business sense. That’s why a purchase requisition is so helpful: Each one tells the story of where requests originate, so you can discuss purchasing needs with the right department heads.

They also allow you to optimize your procurement process and determine how your workflows could function better. Plus, a purchase requisition approval process streamlines communication within your business. The more you stick to the process, the more efficient you’ll be at moving your requests from one department to another.

Fostering this trust within your business is also good for company culture. If everyone knows their role and who to check with for approval, you can establish a clear structure for purchasing and eliminate any confusion as to who’s in charge of buying what.

Prevent fraudulent transactions

A purchase requisition documents supply orders and cash flow, creating the official purchase history. This history ensures you can catch any faulty or fraudulent purchases and deal with them.

A business that doesn’t keep detailed notes of its expenses is prone to unauthorized orders from inside and outside parties. Having accessible records is the best way to address these problems.

Establishing clear roles within your company that identify who has the power to sign off on purchase requisitions adds another level of security. A business where a single employee has the power to order important supplies on their own without checking with anyone else isn’t going to operate effectively.

Instituting added security measures in an automated approval process curbs unnecessary spending and ensures a smooth purchasing process.

Improve supply management

Despite your best intentions when determining supply needs, there’s a chance you’ll make a mistake now and then. For example, if you need equipment to manufacture your newest product but two people in your organization reach out to a supplier separately, you might end up with more than you need — as well as an unexpected hole in your budget.

Proper purchase requisition measures would catch this error before it could happen. Knowing how much employees are requesting and when will save you major headaches.

The benefits of using Jotform to track purchases

If you’re committing to tracking every business purchase, you’re going to need a place to keep them. Thankfully, Jotform has you covered. Its purchase requisition form is especially designed to capture all the necessary information for each order your company considers.

And with Jotform’s Assign Forms feature, you can organize your purchase requisition workflow by delegating tasks to specific employees, granting purchasing permission to those in charge of your expenses.

Automating this process is especially helpful — it eliminates the need for paper documents and allows you to keep everything in one place. That’s where Jotform Approvals comes in. This platform supercharges purchase requisition approvals by creating automated workflows to clearly define individual employee tasks and create an online paper trail.

Jotform Approvals is also an on-the-go solution — it works on mobile devices, and you can always stay on top of approval requests with Jotform Inbox. Jotform Approvals is a foolproof method for creating clear communication channels and ensuring that your purchase requests and orders go off without a hitch.

A purchase requisition holds everyone in your company accountable, ensuring that no one neglects to dot an i or cross a t. Streamlining these operations with a program like Jotform Approvals results in optimal purchasing efficiency, leading to cost savings that will strengthen your business in the long run.

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