Proper robust business systems need to be in place, even for smaller businesses. I remember years gone by when I worked in Industry, we had a stationery supplier that quoted us "happy" every time but invoiced a completely different price! It amounted to around £15-20 per invoice but over the year, it would have added up. As I had a purchase order system in place, I noticed and disputed every invoice. This delayed payment, helped our cash flow and we only payed what they quoted. We made the whole situation advantageous to ourselves.
If we had not raised a purchase order each time, we would not have known. It is not that difficult to do. If you are sent a quote, you can add an order number and file it. This is the best way to do it. Then if your supplier, disputes the prices they have quoted at a later date, you have a record to show otherwise.
Businesses also need to check delivery notes to invoices and make sure that the delivery note matches to what you receive.
It is like at the bank. You ask for £100.00 from the lady behind the counter, she always counts it out for you. If she didn't, would you not check it before you went? You need to do the same with goods coming in otherwise you may be missing some of what was ordered, preferably while the delivery man is still present. Mistakes happen but why should you pay for them?
I would also suggest getting 3 quotes, when you order anything because it is surprising how much money can be saved. It helps to barter. The Internet is good too.
If we had not raised a purchase order each time, we would not have known. It is not that difficult to do. If you are sent a quote, you can add an order number and file it. This is the best way to do it. Then if your supplier, disputes the prices they have quoted at a later date, you have a record to show otherwise.
Businesses also need to check delivery notes to invoices and make sure that the delivery note matches to what you receive.
It is like at the bank. You ask for £100.00 from the lady behind the counter, she always counts it out for you. If she didn't, would you not check it before you went? You need to do the same with goods coming in otherwise you may be missing some of what was ordered, preferably while the delivery man is still present. Mistakes happen but why should you pay for them?
I would also suggest getting 3 quotes, when you order anything because it is surprising how much money can be saved. It helps to barter. The Internet is good too.
"Well, the other supplier could do it for X?"
"I will do it for £20 cheaper, do we have a deal?"
However, remember that goods and services at a cheaper cost are not always the best. You could find an accountant, for example, that charges a lot less than others. However, do they know what they are doing? Are they going to put as much time into helping you? If your fees cover what you save your client and you help their business to grow, your client is gaining. I am using this as an example, because I have seen some examples of where clients have gone for cheap accountancy solutions and it has cost them dearly. They have given HMRC thousands of pounds unnecessarily. It is false economy. I am not the only service provider that will see instances of false economy.
Hope this helps,
Sally Wainwright, Managing Director and Practising Accountant http://www.et-voila.co.uk
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