As organizations look to gain a better handle on their procurement process, provide an additional level of control and help to either control or reduce costs, procurement cards (commonly called P-Cards) can be an effective solution for organizations of many different types and sizes. Before making the leap into P-Cards, check out our list of some thoughts and best practices to consider:
Best Practices When Using Procurement Cards (P-Cards)
- Know the cost / benefit of a P-Card solution before you implement.
- Challenge your existing purchasing/procurement policies and procedures.
- Distribute P-Cards, but retain control.
- Monthly reconciliations are critical.
- Use technology as a tool to help manage purchasing.
- Know the limits of P-Cards.
- Training and Communication are not just important, they are imperative.
- Know the cost/benefit of P-Cards compared to other methods of payment.
- Do a periodic check-in.
Read more about these topics in our recently published white paper on P-Cards. We wrote it to assist organizations in evaluating a potential P-Card solution. You can download the full text of our white paper here. Schneider Downs offers an array of advisory solutions related to P-Cards including evaluating prospective P-Card solutions, well-checks, performing evaluations of existing P-Card policies and procedures and expense audits. To learn more about these solutions, please visit our Internal Audit and Risk Advisory Services page or contact us for additional information.