Hotels must handle a high volume of inventory purchases and financial transactions to keep services running smoothly. Fortunately, technology can help hotels run efficiently while minimizing hours spent crunching numbers and managing supplies. With the right hotel procurement company, hotels can get the support they need sourcing and purchasing inventory for all areas of internal and guest operations.

Knowing what to look for in a hotel procurement company and software platform makes it easier to select the right tool for your needs. To help you decide which features to prioritize and which companies to consider, we’ve compiled a list of the top procurement platforms to evaluate when sourcing software for a hotel or hospitality business. 

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What types of procurement occur in hotel management?

Hotels need a wide array of goods to cater to internal operational needs and enhance the customer experience. The financial investment required for these procurement decisions is significant, representing a substantial part of hotels' operating and supplies budgets. 

Navigating the complexity of sourcing reliable suppliers, ensuring product quality, and managing timely deliveries is also challenging. Overcoming these obstacles through strong processes and technology-driven procurement solutions helps hotels maintain operational efficiency and achieve customer satisfaction.

Hotels must plan budgets and logistics for three types of buying. Focusing on these areas ensures employees have the right supplies to provide guests with the expected level of service and comfort.  

Back of house

Back of house (BOH) operations focus on things guests do not usually see. Despite being in the background, they are crucial to a hotel's smooth functioning. 

This procurement category covers a wide range of supplies essential for daily operations, including:

These items ensure that the hotel maintains its operational efficiency and high standards of cleanliness and service, contributing significantly to the overall guest experience.

Housekeeping

Housekeeping is a critical procurement category for hotels. It provides everything necessary to maintain cleanliness and comfort in guest rooms and common areas. This category includes a diverse range of products essential for daily operations. 

Common operating supplies within this category are as follows: 

Efficient management of these supplies ensures that full-service hotels provide guests with a clean, safe, and welcoming environment.

Guest consumables

Guest consumables are items guests use during their stays. The products a hotel chooses can help enhance the guest experience and ensure comfort and satisfaction. 

The most common supplies within this category include the items guests consistently reach for when traveling, such as:  

High-quality products can boost a hotel's perception, influencing guests' satisfaction and likelihood to return or recommend the hotel to others.

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Hotel Budgeting Template

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Hotel FF&E procurement challenges

Furniture, fixtures, and equipment (FF&E) are items used within a hotel, such as movable furniture, fixtures not permanently attached to the building, and equipment used on hotel property. 

FF&E is the foundation for creating an inviting and functional environment that meets clients' expectations. It includes an array of items, such as:

The selection, procurement, and maintenance of FF&E are vital to hotel operations and interior design. Proper FF&E management significantly influences the overall guest experience and helps promote a hotel's brand image, guest comfort, and operational efficiency.

Hotels often face the following top FF&E procurement challenges: 

Budget constraints: High-quality FF&E typically comes with a hefty price tag, making budget management of this category a particular challenge. Balancing financial limitations with the need for durability and aesthetics requires planning and negotiation.

Lead times and delivery schedules: Many pieces of FF&E are custom-made or ordered from suppliers with long lead times. Due to delays in receiving these products, coordinating delivery schedules to align with project timelines can be complex.

Quality and durability: It is crucial to ensure that FF&E items meet required quality standards. Items must be aesthetically pleasing and durable enough to withstand commercial use. Buyers must carefully vet suppliers and their products to maintain such standards.

Sustainability concerns: With an increasing focus on environmental responsibility, sourcing FF&E that is both sustainable and compliant with green certifications can be challenging. To support a hotel's sustainability goals, it must find FF&E items made with eco-friendly materials that have low environmental impact.

Brand consistency: Maintaining a consistent brand image through FF&E selections across different properties can be difficult, especially for hotel chains operating in diverse markets. Each item needs to reflect the brand’s ethos while catering to local tastes and cultural expectations.

5 Top priorities for hotel procurement

Hotels must balance many high-priority needs in their procurement practices. Keeping within budget while remaining appealing and consistent requires careful attention to the purchasing process. Most hotels prioritize the following five aspects of procurement in their buying programs.

Price competitiveness

In hospitality procurement, striking the right balance between cost and quality is paramount. To achieve price competitiveness, hotels must source materials that meet their standards while ensuring financial efficiency. This involves finding suppliers that offer competitive pricing without compromising quality or sustainability. By prioritizing price competitiveness, hotels maintain their commitment to guests while focusing on financial success.

Product availability

Steady access to high-quality supplies helps hotels maintain service standards and guest satisfaction. A consistent supply of preferred products helps hotels meet demand without interruption. Achieving this requires building strong vendor relationships and managing a supply chain with reliable vendors who can deliver the necessary items on time and in the right quantities. Doing so avoids pitfalls like stockouts and delays that can affect reputation and guest experiences.

Eco-friendly products

The growing focus on sustainability in the hotel industry has led to hotels seeking eco-friendly supply alternatives. This move supports global environmental efforts and responds to the increasing consumer demand for sustainable practices. Choosing sustainable supplies reduces ecological impact, boosts local economies, and improves brand image by showing a commitment to environmental responsibility. 

Volume purchase potential 

Leveraging volume pricing for hotel supplies helps properties improve cost management and profitability. Buying in bulk often secures lower prices per unit, allowing hotels to allocate resources more efficiently. This strategic approach reduces operational costs and ensures ample stock, contributing to seamless guest experiences and sustained business growth.

Visibility and reporting

Strong analytics for hotel supplies spending provide insight into procurement efficiency, reveal cost-saving opportunities, and improve budgeting accuracy. Effective tracking ensures accountability, optimizes inventory levels, and supports strategic decision-making to enhance business sustainability and profitability.

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Top hotel procurement companies in 2026

1. Order.co

Order.co has the best combination of features to help hotels get the goods they need across all categories. For boutique establishments (like Lark Hotels), Order.co offers dynamic and curated catalogs of preferred goods and services. Its user-friendly features ensure hotels can remain consistent in their presentation and quality while maintaining strong pricing.

Pros 

Cons 

2. Tipalti

Tipalti offers finance automation software for various industries, including hotels and hospitality businesses. The platform gives teams easy access to AP automation, expense reporting, employee spending, and more. Its features simplify onboarding suppliers for property locations, maintaining tax compliance, supporting international payments for global properties, and sharing data between finance systems. 

Pros

Cons 

3. Avendra

Avendra offers supply chain management for hotels' supplies and FF&E purchases. It has tools to handle service suppliers, inventory, and large equipment contracts like elevators to keep locations compliant with service and repair licensing. The platform also helps customers reduce costs through operations optimization across the most costly areas of hotels, such as kitchens, cleaning, and freight. 

Pros

Cons

4. Procurify

Procurify is a mid-market spend management and procurement tool with valuable features like payment processing, reconciliation, and invoice matching. Although this reporting system provides robust data on the procurement process and associated vendor and invoice information, teams cannot purchase through the platform, a feature important for high-volume procurement businesses like hotels and hospitality brands. 

Pros 

Cons

5. Precoro

The Precoro procure-to-pay (P2P) platform is a small-business-focused procurement system that offers inventory management, invoice approval workflows, budgeting controls, and other key features that help hotels run operations efficiently. This process-oriented procurement solution can help small businesses systematize their AP and purchasing programs. 

Pros

Cons 

6. BirchStreet

This hospitality-focused platform offers procure-to-pay services for hotels and other hospitality businesses. The tool includes many services common to procurement platforms, such as auto-matching, invoice management, payment processing, and reporting. The platform also has features unique to hotel and service industry operations, like recipe management and granular inventory management tools. Where BirchStreet is hospitality-specific, it’s a good fit for large hotel chains that want to manage hundreds or thousands of properties. 

Pros

Cons

7. Planergy

This cloud-based procurement system creates financial control for companies across all industries by helping users manage inventory and build better procure-to-pay practices. Since the Planergy platform is geared toward small businesses, it's a solid choice for boutique or single-property hotels. It also integrates well with programs like Oracle, SAP, Quickbooks, and other popular enterprise resource planning (ERP) software.

Pros

Cons 

Improve hotel procurement services with Order.co

The right software can put the power of better budgeting and demand forecasting in your hands. From insights on purchasing trends to easy access to the most price-competitive and high-quality vendors, a procurement platform like Order.co can help your hotel maintain efficiency and consistency without overspending. 

Want to take the next step in improving your hotel's procurement practices? Request a demo of Order.co to get started.

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When was the last time a brand made you feel truly cared for? Little touches, such as a refreshing drink arriving at the right moment or attentive extras welcoming you at check in, can make a huge difference in how customers perceive a brand. 

These extra touches don’t happen by accident. Instead, luxury brands make the magic happen with the help of well-defined processes and strong attention to administrative details. 

In the new world of supply chain optimization challenges and higher consumer expectations, it’s more important than ever to use all available resources to delight customers and turn them into brand advocates. 

Download the free ebook: How Centralized Procurement Helps Luxury Brands Deliver Exclusive Experiences

Why prioritize a luxury customer experience?

Everyone is looking for great service, no matter the price point. But for luxury brands, the stakes are higher. The luxury industry turns on providing a sense of exclusivity and offering personalized experiences you can’t find anywhere else. 

Prioritizing a luxury customer experience helps accomplish brand image goals like:

Luxury service makes customers feel valued and special by appealing to the desire for quality, uniqueness, and personalized touchpoints. This approach increases customer satisfaction and fosters long-term relationships and advocacy among a target audience willing to invest in high-quality experiences. In essence, it transforms transactions into more meaningful customer relationships, reinforcing the brand’s prestige and desirability.

What makes or breaks a luxury customer experience?

Luxury brands maintain their reputation and customer loyalty by providing attentive, seamless service in every interaction. Customers seek out luxury goods and services not just for high-quality products but for the consistency and care they receive as patrons. 

Personalization

Personalization means tailoring products and services to fit each customer's unique needs and preferences. Failure to recognize and act upon individual requirements can result in a disenchanted customer who feels undervalued.

Detail orientation

For luxury brands, every aspect of the product, service, and interaction must exude quality and thoughtfulness. Neglecting small details can tarnish the overall experience and perception of luxury. Missing the little things can diminish a brand's reputation, potentially alienating discerning customers who expect nothing less than perfection.

Service

When happy customers describe an experience in hospitality, luxury retail, or other high-end brands, they may talk about the product but rave about the service. Addressing customer needs before they’re voiced makes an experience special and pays long-term dividends in loyalty and brand reputation. Inaction or reactive service can make customers feel overlooked or unimportant.

Consistency

Consistency means providing a uniformly excellent experience across all touchpoints, whether online, in-person, or via phone. Inconsistency can lead to frustration and doubt regarding the brand’s commitment to quality.

Privacy and security

Privacy is one of the less obvious benefits luxury customers look for in an experience. Successful brands strive to ensure customer information is protected and privacy is always respected. Breaches in privacy or security can irreparably damage trust.

Understanding how the above elements can make or break a luxury customer experience is crucial for brands aiming to cultivate loyalty and satisfaction among their most discerning customers.

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8 Ways to create a luxury customer experience

Proactive attention to detail elevates the customer experience. This might mean carefully selecting supplies and consumables or providing a solution to a potential issue before being asked. When creating a luxury experience, there are many approaches to ensure your staff always has what they need to support, surprise, and delight customers.

Here are a few ways to create the optimal environment for exceeding customer expectations: 

  1. Strive for exceptional service: Striving for flawless service in customer interactions transforms the entire dynamic of the luxury experience. This level of service prompts staff to anticipate customers' needs and desires, thus creating a sense of personal attention. It fosters a connection between a brand and its customers to keep patrons coming back. Strong service elevates a brand's reputation, setting it apart from competitors.
  1. Build good processes: Efficient and effective processes make everything easier. Building a repeatable process ensures both consistency and personalization at every touchpoint to provide customers with a seamless and satisfying experience. Proper procedures help brands deliver on expectations. They also provide a course of action when things don’t go to plan, keeping team members proactive and agile in the face of change.
  1. Create exclusivity: Creating exclusivity in customer offerings elevates the perceived value of a brand's products or services, making them more desirable. This approach fosters a sense of belonging among customers, helping them feel special and part of an elite group. It also encourages loyalty since customers appreciate the uniqueness and limited availability of what they receive. Ultimately, exclusivity can drive demand, allowing the brand to command higher prices due to differentiation in a crowded market.
  1. Create consistency in every interaction: Consistency creates trust and reliability in a brand. When customers know what to expect, it enhances their satisfaction and loyalty. It makes them more likely to return and recommend the brand's services to others. Consistent experiences reinforce a brand's commitment to its values and customer base. 

Customers feel appreciated and heard when they repeatedly experience attentive customer service. These improved interactions help businesses foster deeper customer relationships, encouraging loyalty that drives long-term success.

  1. Use technology for automation: Leveraging tech to automate processes can help a brand enhance its service to customers. It streamlines operations and reduces the likelihood of errors that could interrupt customer care and damage credibility. With well-automated processes, brands can deliver faster response times as well as personalized and unique experiences.
  1. Bring the luxury experience online: Incorporating the luxury experience into social media and online interactions elevates brands' prestige and allure. It transforms digital platforms into exclusive spaces, offering personalized, engaging content that mirrors the opulence of in-person experiences. 

This strategy not only captivates and retains high-value customers but also sets brands apart from competitors. By curating a luxurious online presence, a brand can create an emotional connection, make every interaction memorable, and foster a sense of belonging for its audience.

  1. Contract with high-quality vendors: Luxury locations are synonymous with fine products, from the soaps and amenities in a hotel room to the towels and cleaning products at a gym. Moreover, superior quality goods reflect a company’s dedication to excellence, enhancing its image and encouraging positive word of mouth. This strategy boosts customer loyalty and differentiates the brand in a competitive market, ultimately contributing to sustained business growth and profitability.
  1. Practice continuous improvement (CI): Luxury brands are always looking for ways to improve their offerings. Incorporating CI practices into the customer experience program fosters high standards and helps companies remain adaptable. It elevates customer satisfaction and builds a loyal clientele who will support and recommend your brand.

The following strategies can help continually improve the experiences your brand offers:

By focusing on these elements, your brand can create an unparalleled experience for luxury consumers that fosters loyalty, satisfaction, and a strong reputation.

The importance of smooth purchasing for the luxury customer experience

Luxury buyers have high expectations, and the best brands know how to deliver. The front-of-house experience is important, but the back office has just as much to offer when creating luxury. 

A strong procurement process is a cornerstone of building the luxury experience. It helps brands ensure seamless, efficient, and consistent service delivery from start to finish. By streamlining the purchasing process, brands minimize hassle, maximize convenience, and reflect premium quality. Efficient and effective purchasing signifies respect for the customer's time and investment, enhancing the perception of the brand's value and sophistication. A robust procurement process creates an environment that leaves a lasting positive impression on guests. 

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How brands use Order.co to create built-in luxury experiences

CorePower Yoga (CPY)

Wellness brands often offer services similar to those of others in their markets. For this reason, differentiating the brand through service and consistency must be a top priority. 

With over 200 studio locations nationwide, achieving consistency was a tall order for CorePower Yoga. Individual locations ordered supplies from their own list of vendors, creating differences in customer experience across sites. What’s more, rogue spending was costing the company considerable money — over $50,000 per month in out-of-policy spending.

CPY turned to Order.co to get its spending under control. With the help of a strong, centralized purchasing process, the company was able to: 

Optimizing cash flow and time savings enables CPY to better focus on and invest in customers, thus creating a high-quality, consistent experience that helps them stand out in the fitness and wellness market. 

Lark Hotels

Hospitality bookings rely heavily on a brand’s reputation for personalized and consistent service. This is especially true for luxury and boutique hotels looking to differentiate themselves within their sector. One way these brands achieve this is by implementing training programs to help teams deliver top-notch service internally and to customers. 

To regularly deliver high-end service, Lark Hotels needed a way to unify procurement across its dozens of properties. Creating consistency was difficult without the visibility and centralization of a procurement platform. 

Lark brought on Order.co to simplify its process and eliminate the spreadsheets and manual accounting work bogging down the AP team. 

With the platform, Lark:

Order.co puts delivering luxury experiences on the fast track

Using a procurement platform like Order.co to centralize procurement makes it easier for teams to build luxury experiences through consistency and transparency. With Order.co, you always have access to high-quality vendors across all locations. You also have control over every step of the procurement process and access to a wealth of procurement data for continuous improvement. 

If you're ready to elevate your customer experiences by making purchasing as seamless as possible, schedule a demo of Order.co today.

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Is your business among the many companies struggling with manual accounting processes? Although applying automation to accounting tasks can lead to big business benefits, the data burden in that department makes automation seem daunting. Still, the benefits of accounting automation far outstrip the front-end work of implementing such a solution. 

Understanding the challenges of AP helps companies automate the right processes, get the right workflows and policies in place, and ensure that they build efficiency into the purchasing process through streamlining and technology.

If you’re wondering where to begin the accounting automation process, this article covers the basics of accounts payable best practices for automation: what it is, how it works, and where to start your preparation for automation.

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What is accounts payable accounting automation?

Accounts payable (AP) accounting automation uses software and technology such as robotic process automation (RPA) to manage and execute financial tasks. Many of these repetitive tasks traditionally require manual input and processing.

Using accounts payable automation software, the AP team can automate a wide array of activities, including and related to:

By streamlining routine accounting functions, businesses can reduce human error, increase efficiency, and free valuable time for strategic planning and decision-making. Accounting automation tools also often provide real-time financial data and insights, enabling better cash management and business decisions.

How does accounting automation work?

Accounting automation uses software to handle financial transactions and recordkeeping activities. It employs AI or algorithms to automatically process, categorize, and update financial data, eliminating manual entry. It also connects seamlessly with bank accounts and invoicing systems, providing accurate, up-to-date financial reports.

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7 Benefits of AP accounting automation

Software helps teams overcome AP automation challenges to bypass obstacles and increase efficiency in administering accounts payable processing. Consider automation to gain these seven top benefits: 

1. Reduced processing costs

By automating accounts payable processes, businesses can significantly decrease costs associated with manual invoice processing and other financial transactions. Cost reduction not only streamlines operations but also frees up financial resources for allocation to other growth and development areas.

2. Enhanced accuracy

Automation minimizes human error in data entry and spreadsheet calculations, ensuring more accurate financial records and reports. Increased accuracy strengthens compliance with financial regulations and reduces the risk of costly mistakes. It minimizes journal entries and corrections in the general ledger and improves data integrity between systems. 

3. Improved efficiency

AP automation streamlines the entire accounts payable process, from invoice receipt to payment authorization, reducing time spent on these tasks. This efficiency boost accelerates the financial cycle and enables staff to focus on strategic endeavors instead of time-consuming manual processes.

4. Increased visibility

Real-time tracking of invoices and payments provides greater visibility into the company's financial obligations, improving cash flow management. Increased visibility allows for better decision-making since the accounting team can accurately forecast and manage budgets to ensure effective resource allocation.

5. Strengthened vendor relationships

Timely and accurate vendor payments facilitated by automation help maintain positive relationships and may qualify businesses for discounts or better terms. This builds a foundation of trust and reliability, leading to long-lasting partnerships that benefit both parties while enhancing operational efficiency and opening up new avenues for business growth.

6. Fraud prevention

Automated systems can include controls that reduce the risk of fraud by enforcing company policies and providing detailed audit trails. Visibility and accountability in automated systems also act as deterrents against fraudulent activities, ensuring that financial transactions are conducted with the highest level of integrity.

7. Scalability

As a business grows, AP automation software can expand to handle an increasing volume of transactions without the need for additional staff. A scalable solution ensures the company can continue to manage operations seamlessly, adapting to higher demands without compromising the speed or accuracy of the accounts payable processes.

Steps in the accounting automation process

Strong automation starts with a well-defined and documented process. When moving to automation for all or part of your accounting tasks, follow these steps to ensure a smooth and comprehensive transition:

Collect historical data: Gathering and centralizing historical financial data lays the groundwork for migrating it to an automated system. When compiling data, include past invoices, payment logs, tax documents, ebilling data, invoice tracking info, and other relevant financial records from various sources. This ensures the new system has a comprehensive foundation for accurate analysis and reporting.

Select the right software: Conduct due diligence when selecting the appropriate software for your needs. While many systems can accommodate basic business needs, asking certain specific questions will ensure you choose the right software for your company.

Implement and integrate: Once you select the right software, execute an agreement and begin integrating the program into your company’s processes. A strong AP automation system will also communicate with other financial systems to ensure data flows seamlessly.

Migrate data: For existing businesses, migrate historical financial data into the new system. Look for ways to automate the migration process, such as connecting the platform to current programs, vendors, and data sources.

Set up automation rules: Establish rules within the software to automate tasks like invoice processing or payments. These rules dictate how and when the system should perform certain actions automatically.

Train the staff: Educate your team on how to use the new system and any changes to the existing processes. Adequate training ensures everyone understands how to leverage the automation tools effectively.

Monitor performance: Once automation is in place, monitor its performance for issues or inefficiencies. This ensures the program remains effective and secure.

With software, businesses can harness accounting automation's full potential. Companies that automate some or all of their AP process enjoy more efficient operations and better financial management.

Which AP accounting processes can be automated?

Automation can make every stage of the accounting process easier and more accurate. When looking for options to streamline procurement and payment, seek out a platform that can help you with these common accounting processes:

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Types of accounting automation tools

The accounts payable software stack covers a lot of territory, helping finance teams manage every facet of budgetary control, taxation, compliance, and more. When selecting an automation tool, consider the other systems it could interface with, such as: 

Enterprise resource planning (ERP): Comprehensive software solutions integrate all aspects of an organization's operations, including accounting, HR, procurement, and sales.

Cloud-based accounting software: Platforms such as QuickBooks Online, Sage Intacct, and Oracle NetSuite offer real-time financial data access and management tools over the Internet.

Invoice automation tools: Applications designed to streamline the invoicing process can automatically generate and send invoices, track payments, and integrate with accounting solutions. Examples include invoice automation software like Invoice2go and Zoho Invoice.

Expense management systems: Tools like Expensify and Concur automate expense report creation, submission, approval workflows, and reimbursement processes.

Financial reporting tools: Software like Tableau or Microsoft Power BI can extract data from multiple sources to generate comprehensive financial reports and dashboards for analytical review.

Procurement automation solutions: These systems automate the entire procurement process, from vendor selection to purchase order generation and payment processing.

Using procurement software to unify accounting automation

Choose a procurement and spend management solution like Order.co that integrates with your accounting operations tech stack to streamline operations and enhance accuracy. The platform unifies your procurement workflow, vendor management system, payment processes, and reporting tools with your primary accounting program to achieve seamless data flow. This helps accounting departments take advantage of better efficiency and also offers the following additional benefits: 

Integrating automation within the accounting framework not only boosts efficiency and accuracy but also provides a competitive edge through enhanced analytical capabilities and operational resilience.

Streamline accounting with Order.co

Automation for your accounting processes can make a big difference in your revenue, cash efficiency, and quality of life for your accounting department. Order.co makes it easy to automate every aspect of the accounting process, from invoice intake and ordering to payments and reporting.

Learn more in Order.co’s ebook: “How Automation Can Solve Finance Teams' Biggest Challenges.”

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Even small businesses can have dozens or hundreds of monthly invoices, all with different payment terms, due dates, and contract conditions. Since late payments sap cash from your revenue and stifle the growth potential of proactive cash management, keeping on top of these invoices is one of the best ways to ensure your company's financial health. 

Accounts payable (AP) software is the best way to ensure every invoice is paid and recorded correctly, but even a simple AP ledger spreadsheet template can help you achieve useful accountability. 

Ready to get started? Download the accounts payable ledger template for Excel or Google Sheets here.

Key points:

What is an accounts payable ledger template?

An accounts payable ledger is a detailed record your accounting or finance team can use to keep track of the payments owed to suppliers. 

An AP ledger serves two purposes: 

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AP Ledger Template

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What to include in an accounts payable ledger Excel template

An effective accounts payable ledger template should include every key piece of information needed to track and pay invoices. 

At a minimum, the template should feature columns for the following data:

This basic framework provides a comprehensive overview of your invoices. It gives your business everything it needs to track and manage payments.

Download our free accounts payable ledger Excel and Google Sheets templates

Our Excel-based accounts payable ledger template is a great place to track invoices and payments. It provides all the necessary information and calculations to ensure you never pay another late fee due to lack of visibility. 

To get your copy, click here and download the template. Fill in your current invoice information and use it to track invoices and payments over time. 

How to use an accounts payable ledger over time

An accounts payable ledger can significantly improve cash management by offering a clear and organized view of what your business owes suppliers at any given time. This visibility enables better budgeting and financial planning, ensuring funds are appropriately allocated for upcoming expenses. 

Over time, adherence to accounts payable best practices helps teams identify spending patterns, negotiate better payment terms, and avoid late fees through prompt payments. It also helps you build a positive relationship with suppliers, which can be beneficial for securing favorable terms and discounts in the future.

To track your invoices on our template, follow these steps:

1. Input invoice details

For each invoice you receive, enter all relevant details into the template. Include the vendor's name and address, invoice number, date issued, due date, amount due, and relevant notes regarding payment terms or conditions. Be thorough, as accurate data entry is crucial for effective tracking.

2. Track payment status 

Use a dedicated column in your ledger to track each invoice's payment status. You can apply simple labels like "unpaid," "partial," or "paid," or you can implement a color-coding system for at-a-glance visibility.

3. Monitor due dates

Review the ledger regularly to identify upcoming and past-due payments. This proactive approach will help you avoid late fees and take advantage of any early payment discounts offered by vendors.

4. Reconcile against POs and payments

Reconcile your accounts payable ledger with bank and vendor statements regularly (weekly or monthly) to ensure accuracy. This step is crucial for catching errors or omissions early on.

5. Analyze payment patterns

Over time, the ledger's data will help you analyze your company’s spending and cash flow patterns. Identifying trends can help you negotiate better terms with suppliers and optimize payment schedules to improve liquidity.

Following the above steps to maximize the benefits of using an accounts payable ledger template will help your business manage its finances more effectively.

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AP Ledger Template

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Benefits of automating your accounts payable process

As your business grows, so does its volume of transactions, making manually tracking accounts payable invoices more of a challenge. Over time, the increasing number of invoices, each with its own due date, terms, and conditions, can become overwhelming, calling for a more sophisticated approach. 

With AP automation software like Order.co, you can process and monitor every order for your business without manual tracking, error-prone data entry, or loss of visibility. Order.co simplifies the AP process with features like:

Invoice automation and matching: Match incoming invoices with purchase orders and receipts automatically. This helps verify transactions and speeds up the approval process.

Automated approval workflows: Set up rules based on invoice amounts, user roles, or supplier categories to automatically route invoices to the appropriate team members.

Automatic GL coding: Get line-level accuracy for the general ledger with automated coding for every order and item. 

Reporting features: Use the wealth of data in your accounts payable function to conduct spend analysis and discover trends within your procurement process. 

FAQs about accounts payable

Manual tracking is prone to errors and missed payments as transaction volume grows. Automating accounts payable increases accuracy and visibility, helping businesses manage payments and records efficiently.

Accurate ledgers enable prompt payments, fostering stronger supplier relationships and opening opportunities for better terms or discounts.

Automation minimizes manual data entry and errors, streamlining invoice and payment workflows for greater control and efficiency as businesses scale.

Frequent reconciliation with bank and vendor statements helps identify discrepancies early, ensuring precise financial records and reducing payment risks.

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The first order of starting or scaling a cannabis-related business is securing the funding and equipment necessary to produce high-quality cannabis products. Access to the right technology helps cannabis growers, processors, and dispensaries deliver great experiences and build their brands.

However, finding capital for the types of cannabis equipment necessary can be one of the most challenging parts of running a cannabis company. Since traditional business loans may not be an option for those in the cannabis sector, non-bank financial services can be an effective way to make equipment purchases and get operations off the ground. By understanding the financing options available, you can make a smart funding choice that ensures your business has the right supplies for success. 

Download the free ebook: Grow Your Cannabis Business–Overcome These Three Finance Challenges

What is cannabis equipment financing?

Cannabis equipment financing is the process of getting financial loans to buy or lease new or used equipment for a cannabis business. Though cannabis businesses operate in a burgeoning industry, they often face challenges accessing funding from traditional lenders due to the legal complexities surrounding cannabis substance scheduling. 

The impending move to lower cannabis to a Schedule III substance, as well as the potential future passage of the SAFER Banking Act, may soon give cannabis businesses and banks a smoother path to operation. Until then, a cannabusiness may need feasible alternatives to access capital to fuel operations.

With cannabis equipment loans, dispensaries, growers, and related businesses can acquire cultivation systems, lighting, security setups, and more without paying the full cost upfront. Securing financial support is crucial to facilitating growth and developing operational efficiency within the rapidly expanding legal cannabis market.

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How Order.co approaches cannabis financing

Order.co gives cannabis-related businesses access to the capital and purchasing power to launch and grow a successful cannabis business. Using the purchasing platform and access to Order.co Financial Offerings preferred advances and extended net terms, cultivators, processors, and dispensaries can buy the equipment and supplies they need for daily operations without incurring additional fees or higher interest rates. 

Here’s how it works:

Order.co's extended terms and preferred advances help businesses get the equipment and supplies they need to start generating revenue. These financial offerings help growing companies balance their cash flow, leverage lending effectively, and build their business without red tape or limitations.

What are the requirements for obtaining traditional cannabis financing?

Despite recent legal moves to change the Federal Drug Schedule designation, cannabis remains a Schedule I controlled substance. That makes financing a tricky enterprise. While it’s not illegal to fund a cannabis business through loans, the risk profile makes many traditional lending agents and institutions think twice.

If you want to pursue traditional financing, you need to have: 

1. A strong personal credit report

Every loan considers your credit score as part of the application process, and cannabis loans get an extra-close inspection. A 670 or above is in the “good” category and is usually the minimum to be considered for a high-risk loan. 

2. A well-established credit history 

Credit isn’t just about good behavior—it's about a good track record as well. A strong credit score and a long history of timely repayment increase your chance of securing funding.

3. No bankruptcies

Any indication a borrower might default can be a major roadblock to getting a loan, especially in high-risk lending. While advice online says bankruptcy merely “might” be a decision-making factor, it’s fair to say a rocky credit history can make or break your application. 

4. A separate business account

Funds for a cannabis business (as with any business) must be separate from other sources of revenue. With cannabis, the separate account becomes part of the reporting and regulatory requirements of applying for financing. Establish a business account under your business taxpayer identification number (TIN) along with any state filing requirements or permits.

5. Citizenship or legal resident status 

The nature of cannabis products makes US citizenship or residency a requirement for borrowing funds. Since regulations concerning lending and business permits for cannabis businesses may vary, you will want to talk to an attorney for up-to-date, accurate information if questions about citizenship could impact your loan. 

6. A business plan

When in doubt, write it out. Create a documented business plan with projected revenues, a mission statement, a SWOT analysis, and marketing plans as an addendum to your financing application.

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Types of equipment cannabis businesses need

Starting and scaling a cannabis operation comes with its share of growing pains, and even small businesses in the cannabis industry have significant equipment needs. While launching a business like a dispensary storefront may seem straightforward, a lot goes into everything from building a functional backroom to maintaining an efficient production floor. The costs to start a dispensary vary widely, with some sources reporting a range of $250,000 to $750,000 and other estimates climbing as high as $2M in high-cost locations. 

A few of the tools required for growing, processing, finishing, and selling cannabis products include:

Growing equipment

Processing equipment

Finishing and retail equipment

Challenges of obtaining cannabis equipment financing

Federal prohibition of cannabis presents a major stumbling block to businesses operating legally within state statutes. Although some individual states support and benefit from cannabis sales for recreational and medicinal use, banking institutions must follow federal banking laws in administering loans. This makes it harder for cannabis businesses to get financing for their operations.

Two specific banking acts prevent most institutions from offering competitive loans to cannabis-related industries: the Anti-Money Laundering Act (AML), which requires banks to report suspected money laundering or illegal activities, and the Bank Secrecy Act (BSA), which requires them to report all transactions over $10,000 and all transactions involving cannabis and other scheduled substances. 

Because of these complexities, many lenders refuse to participate in cannabis-related loans. Those that do, including smaller institutions like credit unions, often charge higher rates or holding fees to reflect the increased risk. 

Cannabis equipment financing strategies: pros and cons

Choosing to finance the purchase of cannabis equipment is a pivotal decision for many cannabis business owners, as most lack the upfront capital to buy these essential tools outright. Cannabis financing allows borrowers to secure the machinery and technology necessary for efficient operations that comply with legal regulations. 

However, while financing programs can offer payment plans and better cash management, they may also come with interest expenses and long-term debt. Weighing the pros and cons of business financing is essential for cannabis companies looking to grow in a competitive market.

Benefits of financing cannabis equipment

  1. Access to the latest technology: Financing can increase access to advanced equipment, ensuring companies stay competitive and compliant.
  2. Flexible payment terms: Financing can provide flexible payment options tailored to match cash flows.
  3. Improved cash flow management: Financing helps reduce large capital expenditures to manageable payments.
  4. Easier budgeting: Fixed financing payments facilitate better budgeting and financial planning.

Drawbacks of using financing to secure cannabis equipment

  1. Interest and fees: Financing solutions often come with high interest rates and fees that significantly increase the cost of ownership.
  2. Equipment obsolescence: The pace at which technology changes increases the likelihood that a dispensary will be stuck with outdated and inefficient equipment.
  3. Strict eligibility criteria: Some cannabis businesses may struggle to qualify for financing due to stringent eligibility criteria.
  4. Potential for repossession: In default cases, financed equipment is at risk of repossession, disrupting operations and leading to additional financial losses. 

Long-term commitment: Financing locks businesses into long-term payment schedules, limiting flexibility in an industry known for rapid changes and regulatory shifts.

Should you lease cannabis equipment?

Cannabis equipment leasing presents an appealing alternative for cannabis companies looking for financial flexibility and reduced upfront costs. However, leasing options also have challenges, including higher long-term expenses and contractual obligations.

Benefits 

  1. Lower initial costs: Leasing equipment generally requires less initial capital than purchasing, making it more accessible for businesses with limited upfront funds.
  2. Flexibility: Leasing agreements often offer the flexibility to upgrade or change equipment, which is particularly beneficial in the rapidly evolving cannabis industry.
  3. Tax advantages: Lease payments can sometimes be deducted as business expenses, offering tax benefits.
  4. Maintenance and repairs: Depending on the lease agreement, maintenance and repairs may be covered or managed by the lessor, reducing operational burdens.

Drawbacks 

  1. Higher long-term cost: While leasing offers lower upfront costs, the total expense may exceed the cost of purchasing equipment outright.
  2. Contractual obligations: Lease agreements come with fixed terms that might not always align with the state of the business, potentially leading to wasted resources.
  3. Lack of ownership: At the end of a lease term, the business has no equity or ownership in leased equipment.
  4. Limited customization: Leased equipment often cannot be modified or customized to meet operational needs.
  5. Higher insurance costs: Some leasing companies require additional insurance coverage, increasing operational expenses.

Case Study: How Standard Wellness unlocked cash and free time

There’s always something to order or coordinate in a cannabis business, especially when that business cultivates, processes, and dispenses its product. This is the case for Ohio- and Utah-based Standard Wellness, and the company needed a way to streamline its processes, take care of the bottlenecks, and access financing. 

Standard Wellness partnered with Order.co in Spring 2022 to help align its ordering and approvals process. The company also took advantage of the capital advance and net terms options it couldn’t find through traditional means. The partnership allowed Purchasing and Procurement Coordinator Mikey Haverman to recoup valuable time previously spent chasing orders and open up better cash flow opportunities to fuel growth. 

Says Mikey, “Having one centralized place that has all of the orders in it with the vendor numbers and the tracking is extremely helpful.” Even better, Standard Wellness was able to leverage the financial benefits quickly and easily. When the company needed to purchase a flower-filling machine, purchasing it using traditional financing proved difficult. Order.co helped them overcome the challenge, “We were able to secure the cash in two days,” Mikey explains. 

As a result of the partnership with Order.co, Standard Wellness now pays just one invoice a month, saving 10 hours of manual work per work while doubling its ROI in cost savings. They’ve even used extended net terms to gain an additional 30 days to pay vendors. These increases in time and flexibility allow Mikey to turn his attention to other projects and growth strategies.

Get better cannabis equipment financing options with Order.co

If you’re a cannabis-related business intent on fast and sustainable growth with less frustration, Order.co can provide access to preferred vendors, competitive pricing, and excellent purchase and payment options. Order.co makes it easier for cannabis businesses to get up and running or refine their existing procurement process. With help from our software, you can also unlock capital advances of up to $500K and enjoy extended net terms of 30, 45, or 60 days for all purchases. 

If you want access to capital and purchasing support to grow your cannabis business, schedule a demo of Order.co to learn more.

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Reaching for a product and finding an empty spot on the shelf is frustrating. When you’re forced to work around out-of-stock items, it can be hard to provide standardized services and offer consistent shopping experiences. Given the current climate of shortages and supply chain delays, businesses facing inventory issues may have to opt for lower-quality options to meet client needs. 

Many business owners and managers react to these experiences by seeking out inventory management solutions. The rationale is that companies won’t run out of their best products if they keep careful track of each item and stay on top of reorders.   

However, granular inventory management isn’t always the best solution to stocking challenges. In many cases, well-structured procurement processes and help from the right technology can give a business peace of mind over its inventory practices.

This article covers the basics of inventory management for retail brands. It details the methods and metrics brands use to manage high volumes of retail inventory. It also shares the top alternative for businesses looking to maintain appropriate inventory levels without resorting to time-consuming, per-item inventory tracking. 

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What is retail inventory management?

Inventory management is a way for businesses to order, track, organize, and control their stock and supply levels to ensure they have the right goods in the right quantities at the right time. 

This management system can apply to materials and supplies for internal use or products for sale.

Retail inventory management refers specifically to managing retail goods for sale to consumers. Retail inventory might include garments for a fashion brand or various products for an ecommerce store. 

To replenish and keep track of their stock and internal supplies, many businesses rely on the following practices: 

Effective retail inventory management aims to minimize costs associated with overstocking or stockouts while maximizing sales and profit. 

How does retail inventory management process traditionally work?

Retail inventory management follows a regular cycle of ordering, storing, tracking, and managing stock levels for a location or a company. 

Store inventory data helps retailers make informed decisions about restocking. It can be used to consider factors like typical turnover times and carrying costs (also called holding costs). The data can also help identify slow-moving items that need a promotional push or underperforming items that need to be discontinued.

For instance, many fast-fashion brands skip restocking to save time and reduce inventory complexity. Instead, they give customers the option to donate or dispose of items and handle the return as a store credit or refund. 

While this method means the brands “lose” the value of the item, it may be more cost-effective if the associated shipping and restocking fees outweigh the per-item loss in the transaction. Store credit is also a retention and upsell play since customers often spend beyond their store credit amount to secure free shipping and volume discounts. 

The ultimate goal in inventory management is to maintain optimal stock levels that meet customer demand without overstocking, thereby reducing costs and maximizing sales and profitability. Streamlining inventory handling time also optimizes inventory spend management.

What are the main challenges of retail inventory management?

A lot can stand in the way of accurate inventory control. Forecasting errors, ineffective returns systems, and issues with supply chain and lead time can all make stock management challenging. 

Also, recent increases in supply chain disruptions are delaying restocking and affecting sales more than in the years before the pandemic. This makes demand forecasting techniques more important, which can introduce difficulties for smaller retailers trying to compete with larger ones. 

The need for effective inventory tracking and out-of-stock management creates a balancing act between meeting customer demand and maintaining cash flow.

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Categories of retail inventory

One factor that helps brands consider whether they need an inventory management system is the retail categories they serve. In some cases, like food and beverage, inventory management is an important factor in controlling costs. In others, the sales cycle is longer, decreasing the need for real-time monitoring. 

Perishable and non-perishable goods: This category includes items with a short shelf life, such as food products, flowers, and some pharmaceuticals. Perishable products require frequent restocking and careful management to avoid dead stock. Often, these items need a first in, first out (FIFO) system to ensure inventory turnover. Non-perishables are items that have a long shelf life, like canned foods, dry goods, and other packaged products. They can be stocked in larger quantities since they last longer.

Fast-moving consumer goods (FMCG): These are products that sell quickly at relatively low cost, such as toiletries, over-the-counter drugs, cleaning supplies, and other everyday items.

Slow-moving consumer goods (SMCG): This category is comprised of items with a longer sales cycle and higher price points. It includes furniture, high-end electronics, and appliances.

Fashion and apparel: This inventory type includes clothing, footwear, and accessories subject to seasonal changes and trends. It must be managed with an eye on changing consumer preferences. Brands must consider overstock and disposal when planning their buying cycle.

Luxury items: These are high-value items often characterized by their quality and brand prestige, such as jewelry, designer wear, and premium electronics. Inventory levels in this category are typically lower but require high security and may have different sales cycles from commodity goods.

Specialty goods: Specialty goods are a niche category catering to specific interests or hobbies, such as sporting goods, musical instruments, or art supplies. Demand can be variable depending on seasonality or consumer interest trends.

Consumables: Most businesses — even retail brands — rely on consumable items to run daily operations.

Brands that do both — such as retail shops — may have a combination of inventory management goals and needs to manage their wholesale product purchases as well as their indirect spend.

Retail inventory management strategies

Depending on your brand’s niche and sales volume, it may rely on certain management strategies to ensure timely delivery of goods and a stable inventory management cycle. 

Here are some of the most common methods used when brands must manage inventory:

Just-in-time (JIT) Inventory

When brands use this approach, they can minimize inventory levels by ordering products as close as possible to when they are needed for sale or production, reducing storage costs and risks of overstock. It’s trickier to be successful with this strategy in the face of supply chain constraints or shortages.

Demand forecasting

Many brands estimate their future supply needs based on previous data and assumptions about sales growth for the coming quarter or year using a process called demand forecasting. Referencing historical sales data when forecasting future demand and adjusting inventory levels can help prevent both overstocking and stockouts.

ABC analysis

This strategy involves categorizing inventory into three groups, with 'A' items being the most valuable and 'C' the least). It allows businesses to prioritize resources and focus more closely on managing the most important products. ABC analysis is an approach similar to the Kraljic matrix, which companies use to identify the various impacts inventory or supplies have on a business.

Bulk shipments

Buying in bulk can reduce purchasing costs by optimizing both purchase and handling expenses. It can also unlock volume discounts and reduce stock volatility for mission-critical items.

Vendor-managed inventory (VMI)

In VMI, suppliers manage inventory levels based on pre-established service parameters set by the retailer (potentially via an open purchase order) to reduce stock shortages and minimize excess inventory. This method requires specific vendor relationships and contracts.

Drop shipping

In this method, a third-party shipper fulfills ecommerce orders as they are placed. Drop shipping helps streamline the order process, improve delivery times, and eliminate warehouse management struggles, enabling consistent and quick customer service. 

Cycle counting

Cycle counting is an alternative to physical inventories that involves regularly scheduled counts of small portions of inventory. It ensures that every item is accounted for at least once during a period without significantly disrupting operations.

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Using forecasting strategies to control stock and supply levels

Inventory forecasting is a critical strategy in retail management. It aims to predict future product demand to optimize inventory levels. 

This process involves the following key steps:

1. Historical sales data analysis: The foundation of effective inventory forecasting lies in analyzing past sales data. Analysis helps identify patterns, trends, and seasonal fluctuations in product demand, providing a baseline for future predictions.

2. Market trend evaluation: Beyond historical sales, understanding broader market trends is essential. This includes monitoring industry news, consumer behavior changes, and economic indicators that can influence demand. Evaluating purchase price variance for items you regularly stock is also important to forecasting spend in these areas.

3. Product lifecycle assessment: Each product has its lifecycle stage — introduction, growth, maturity, decline — which affects its demand forecast. Recognizing where a product stands in this cycle allows for more accurate inventory planning.

4. Supplier performance review: Inventory forecasting also requires evaluating supplier reliability and lead time to ensure restocking aligns with forecasted demand without causing overstock or stockouts.

5. Use of forecasting tools and software: By leveraging advanced tools and software that employ algorithms and artificial intelligence, businesses can significantly enhance the accuracy of forecasts by analyzing large datasets more efficiently than with manual methods.

6. Continuous revision and adjustment: Forecasting is not a set-and-forget process. It requires ongoing adjustments based on real-time sales data, unexpected market shifts, or supply chain disruptions.

The above steps help retail brands develop a more strategic approach to inventory management. They can reduce costs associated with excess inventory and ensure product availability meets customer demand.

Performing an inventory audit

Performing an inventory audit involves several critical processes to ensure accuracy and efficiency in managing a company's stock levels. 

Here are the key steps involved:

1. Planning and preparation: This initial phase involves setting clear objectives for the audit, selecting the inventory or locations to be audited, and determining the timing and resources required. It also includes training staff involved in the audit to perform their tasks effectively.

2. Physical inventory count: At this stage, businesses conduct a physical count of their inventory. Counters may use various methods, such as manually tallying items, using barcode scanners, or employing RFID technology for more accuracy and efficiency. It's essential to compare these counts against the recorded inventory levels in the company's management system.

3. Reconciliation of variances: After completing the physical count, discrepancies between the counted inventory and recorded figures must be investigated and reconciled. Reasons for variances could include theft, damage, misplacement, or recording errors. Adjustments should be made in the inventory records to accurately reflect actual stock levels.

4. Evaluation of inventory records: This involves reviewing the processes and systems used for recording inventory transactions, including purchases, sales, returns, and write-offs. The aim is to identify any weaknesses or errors in recording and processing transactions.

5. Report findings and recommendations: The final step is compiling a comprehensive report detailing the audit's findings. This report should highlight discrepancies uncovered during the count, assess the effectiveness of current inventory management practices, and provide recommendations for improvements.

By following these steps and regularly performing inventory audits, companies can maintain accurate records of their stock levels, minimize losses due to discrepancies or inefficiencies, and make informed decisions about purchasing and sales strategies.

Retail inventory management KPIs to use in analysis

Tracking key performance indicators (KPIs) for inventory management can help you better understand the flow of goods through your business so you can refine your approach to sourcing and replenishing products and consumables. 

Here are a few informative KPIs to consider when tracking inventory performance metrics:

By closely monitoring these KPIs, retailers gain valuable insights into inventory management, enabling them to make data-driven decisions that enhance operational efficiency and profitability.

Manage stock and inventory more effectively with Order.co

All businesses need a reliable method for managing inventory levels, procurement processes, and expenses, especially when it comes to indirect spend. Even retail companies focused on consumer sales depend on consumables, office supplies, facilities management products, and other goods to keep their front and back offices running smoothly. For many businesses, a traditional inventory management system may not be the best or most cost-effective approach. 

Effective procurement management software can help every type of business unlock discounts and efficiency through bulk orders, whether for single stores or across multiple locations. It can keep the company’s supply chain resilient with effective out-of-stock management and quality control through high-performing suppliers. Procurement management helps keep customer experience and satisfaction high without burdening the bottom line. 

That’s why service-based businesses, retail brands, hotels, spas, salons, dispensaries, and many other businesses partner with Order.co for purchasing automation and spend management. Order.co helps all kinds of companies get the support they need without time-consuming granular inventory control. With Order.co, businesses give purchasing power to the front line so they can order the products and supplies they need without bogging down the process or losing control of the budget.

Order.co:

Order.co delivers the consistency and cost control a business needs without maintaining granular inventory records. It also helps a retail business automate the procurement process for more effective inventory management. With the smart checkout stock visibility feature, buyers know if an item is in stock before they hit the buy button. 

If your business could use more balance in its inventory and indirect spend management needs, schedule a demo of Order.co today. 

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