When it comes to purchasing investment properties or houses to flip, a little organization can help simplify the purchase process and maximize returns on the investment. Any time you are updating or flipping a property, keeping track of the various products needed and vendors supplying services can be a challenge. The more properties you are controlling, the more proper organization will save time and money in the long run.
The Importance of Purchase Orders
When it is time to start working on the home or business you purchased, taking the time to create purchase orders will help you keep each project on track and on budget. Purchase orders are documents provided by the buyer or homeowner and given to vendors in an effort to clearly delineate the goods or services necessary and the agreed-upon price.
By keeping purchase orders neatly organized, you can:
• Make sure services are rendered on budget and on time.
• Prevent the double-purchasing of the same good or service.
• Organize which vendors are supplying which services or goods.
• Easily organize various projects.
• Ensure projects are completed in the proper order.
Purchase orders also contain important vendor information, making it easy to find the information needed to complete the payment.
Simplify the Purchase Process
Whether you are redesigning a single room or completely remodeling a space, it is likely that multiple purchase orders will be needed between the beginning and completion of the project. Make sure to keep all those purchase orders neatly organized by first establishing consistent purchase order guidelines and process. Next, consider tracking the purchase orders electronically. This allows any partners or business associates to easily access a purchase order on a phone or tablet when needed.
Pairing Purchase Orders with Invoices
After the goods are delivered and services are rendered, the vendor will provide an invoice for payment. Pair the invoice received with the purchase order and it will be easy to determine which projects are completed and which are still in process. Make sure to keep detailed records of any checks written as well for bookkeeping purposes. Taking the time to pair the initial purchase order with the coordinating invoice will also provide an opportunity to double-check that the final prices are as they should be.
Keeping track of any past purchase orders will also provide valuable reference materials the next time you need the same goods or services. Look back at the vendor used last time and use the previous purchase order to help remind you of your previous pricing agreement. Make sure to take notes on vendor performance as well.
Keeping your flipping or renovation project on time and budget comes down to proper organization. Taking the time to establish a thought-out purchase order process in the beginning will help ensure that every person working on the project is on the same page and that items are being checked off the list in the proper order. Create your own purchase order system or choose a pre-existing system designed to streamline the process by providing electronic organization.