OUR THOUGHTS ON:

Understanding Procurement Cards Benefits and Pitfalls

Risk Advisory/Internal Audit|Technology

By Patrick Kerns

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.  

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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