Expenses hurting your NOI?

March 14, 2022

Table of Contents

By Accounting Team. For more information, contact Robert Parmar

If you have ever paid for a $600 dishwasher when replacing a $45 part would do, we hear you. Apartments have a high volume of expense activity. Without a system of checks and balances in place, it’s easy for unqualified staff to make unnecessary purchases.

Don’t let unnecessary expenses destroy your budget. Purchase Orders (POs) provide a system of checks and balances that curbs unnecessary spending. That’s why we implement the AvidXchange PO system at every property we manage.

Here are some ways our PO system helps us provide you with better service:

Oversight

Community Managers submit POs to their Portfolio Manager for approval. The system kicks the PO up to the Portfolio Manager’s supervisor if the expense exceeds the maximum amount pre-authorized by Ownership. The Supervisor is then required to contact Ownership for written approval before completing the purchase.

Documentation

We require the requesting party to provide a written summary of the need and supporting documentation, such as bids, estimates, etc. Documents are uploaded into the AvidXchange software for easy access.

Accurate Coding

Our PO system is integrated with our accounts payable system. This allows us to have invoice coding reviewed by multiple people from the moment a PO is submitted until the invoice is paid. Multi-party review increases accuracy.

Simply put, implementing a PO system creates a process that puts decisions back in the hands of qualified staff and provides the information they need to curb unnecessary spending.

Ready for a better property management experience? Reach out to our team below to speak to us about your property management needs.

Robert Parmar

Southeast Region

rparmar@smfield.com

770-920-3055

Trevor Manning

Northwest Region

tmanning@smfield.com

503-867-5214

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Summerfield specializes in the management of apartment properties that are approximately 125 units or larger, and is licensed to manage in Washington, Oregon, Idaho, Florida, Georgia, & South Carolina.

If you would like to discuss additional specifics of our management program, please reach out to our Managing Director, Robert Parmar at rparmar@smfield.com or call 770-628-5943.