Insights

Family Office Challenges: Inefficient Procure-to-Pay Process and Lack of Spending Approval Controls

The Challenge in QuickBooks

As it exists in QuickBooks, the Procure-to-Pay process has several limitations that significantly hinder its efficiency and internal controls. Purchasing workflows are not customizable, so you can forget about molding the process to fit your family office’s needs. Even worse, purchase orders are not “connected” with other modules/functionality, so you will find yourself performing redundant data entry. Expense processing is an unproductive endeavor where payment is made through a manual fax and there is no simple way to pay multiple bills in one step. For a growing business that might process hundreds, if not thousands, of purchase orders, this can be an extremely time-consuming inefficiency.

Perhaps the most dangerous problem with Purchasing in QuickBooks is the complete lack of an approval process. Because there are no audit capabilities to track transaction approvals, your finance team will struggle to prevent unauthorized spending. The important question is to ask yourself: Is our spending always being done in accordance with the family’s consent?

 

Sage Intacct’s Solution

You can use the Sage Intacct Purchasing module to create structured, predefined transaction and approval workflows that increase purchasing speed, accuracy, and efficiency. Combining Sage Intacct’s Purchasing module with the system’s suite of dashboard and reporting tools, you can monitor budget versus actuals, analyze costs, and gain visibility into your entire Procure-to-Pay cycle. The benefits can be summarized into three key areas:

  1. Streamlined Procurements and Payments – The Purchasing module connects with the Accounts Payable and Cash Management modules so that you only enter data once. Sage Intacct enables you to attach files with drag-and-drop simplicity for easier recordkeeping and instant access to supporting documents.
  2. Visibility and Reporting – Sage Intacct gives your Procure-to-Pay team instant access to real-time information in order to help them make more informed decisions. Customizable dashboards can be used to check budget to actuals, transaction status, and pending approvals. Drill-down and slice-and-dice reporting by dimension give your team deeper visibility from any perspective.
  3. Control and Flexibility – You can either adopt Sage Intacct’s standardized processes or adapt workflows to fit your family office’s unique needs. Strengthen your internal controls with GAAP-compliant customized approval workflows and automated alerts and email notifications.
  4. Automated Payment Processing – Automate processing of an individual payment in Sage Intacct by compensating the vendor through transmission of an electronic payment file instead of manual fax.

By switching to Sage Intacct, you can take control of your Procure-to-Pay process, lower your payment processing costs, and prevent unauthorized spending that was not properly approved.

 

For more about how Sage Intacct offers your family office the solutions you need, click the image below to download our guidebook Sage Intacct: Solving the Challenges Family Offices Face on QuickBooks

Sage Intacct Family Office

 

Family Office Challenges: Manual Multi-Entity Consolidation
Family Office Challenges: Manual Fixed Asset Tracking
Related Posts
Orchestrating an Effective Close In a Remote Working Environment
Orchestrating an Effective Close In a Remote Working Environment
COVID-19: What Should Organizations Already Be Doing?
COVID-19: What Should Organizations Already Be Doing?
Sage Intacct: Solving the Challenges Family Offices Face on QuickBooks
Sage Intacct: Solving the Challenges Family Offices Face on QuickBooks

Comment