Managing purchasing compliance and controls as business grows

For small and medium-sized businesses (SMBs), purchasing often begins informally. Owners, decision-makers, or employees might place orders with vendors directly, use a corporate card, or get reimbursed for purchases made personally. While this flexibility can work in the early stages, it creates long-term risk if not backed by clear policies and documentation. Without structure, businesses can quickly run into issues like uncontrolled spending, vendor inconsistencies, budget overruns, and difficulty maintaining accurate financial records. As the business grows, so does the potential impact of these gaps—especially when it comes to audits, compliance, and financial planning.

Purchasing compliance is the practice of ensuring that every transaction—from request to payment—follows internal buying policies and external regulatory standards. When these controls are not in place, SMBs may face duplicated orders, fragmented vendor relationships, or incomplete documentation. Informal practices can also lead to tax reporting errors or challenges during financial audits, incurring additional costs and churn. According to the 2024 PwC Digital Procurement Survey, 65% of procurement professionals identified cost control as their top priority, reinforcing the importance of structured processes and visibility in day-to-day purchasing.

Start with a formal purchasing policy

The foundation of compliance is policy. Every business, regardless of size, should define and document how purchasing decisions are made. A strong policy should clarify:

• Who can make a purchase
• What approval is required based on spending thresholds and expense categories
• What documents, such as quotes, contracts, receipts, must be collected for spend oversight
• Processes for submitting and reconciling purchases

This helps eliminate ambiguity, align decisions with budgets, and keep a consistent purchasing process across the business. When followed, policies not only reduce unnecessary spending but also prepare SMBs for audits, tax season, and strategic budgeting.

Set up a clear purchasing approval process

Having a defined purchase approval process helps ensure purchases are reviewed and authorized before money is spent. The steps can be simple and flexible based on business needs such as smaller purchases under a certain threshold might require only a supervisor’s sign off, whereas larger purchases may need additional review from finance or ownership. Formalizing these steps helps prevent unauthorized spending and promotes accountability. Most importantly, it creates a record of purchasing decisions that support financial oversight and regulatory compliance.

Standardize vendor selection around business needs and policies

Inconsistent vendor use is a common challenge for growing businesses. When different team members purchase similar goods or services from different sources without coordination, it can lead to inconsistent pricing, unclear terms, and becomes harder to track purchasing history. Establishing a preferred vendor list and revisiting it regularly helps maintain quality, cost, and compliance standards.

Use technology to support policy-compliant purchasing

Amazon Business offers several features that help SMBs maintain control over purchasing and stay aligned with internal buying policies. Owners and decision-makers can set roles and permissions within their business account, allowing only approved individuals to place orders. They can also customize how approvals are routed and monitor spending patterns through built-in analytics-driven tools. Alongside, they can create Guided Buying policies, where staff are directed to purchase from preferred vendors. Moreover, Amazon Business also offers Pay by Invoice, making it easier to manage cash flow and keep financial records organized.

Better controls, better outcomes

Purchasing compliance helps SMBs stay organized, control costs, and make informed buying decisions. When buying policies, approval steps, and vendor practices are clearly defined, it becomes more manageable to oversee daily operations and maintain accurate financial records. Over time, this enables business to grow and scale without losing visibility and control.