Procurement software: your UK guide
Figure out the most efficient procurement system for your business. Look at types of software and its must-have features. And see how Xero’s accounting platform connects with third-party apps to give you smooth, reliable purchasing workflows.
How to choose the right procurement software
Not sure which software to go for? Consider every step of your procurement process, from requisition to payment.
Understand your procurement needs
Look at your current approach and decide what needs improving. Too many spreadsheets? Your approvals workflow?
Compare features and integrations
For each software option, see which features are built in versus the apps you can integrate. Look out for free trials.
Consider handling procurement and accounting together
Is it worth investing in a whole system instead of standalone tools? That way you get a joined-up approach to your data.
What is procurement software?
Procurement software replaces manual purchasing processes – like spreadsheets and email – with digital workflows to save businesses time. Although Xero doesn’t handle all your procurement natively, it gives you a foundation of billing and purchase order tools – just connect apps!
- Create, send, and track purchase orders from within Xero accounting software
- Choose from a range of procurement apps to connect to Xero
- The data regularly syncs between your Xero organisation and any connected apps
- 91% of customers agree Xero is easy to use
The three main types of procurement software
The type you need depends on your business size and specific needs.
e-procurement software
Small and medium business owners often choose e-procurement software for its digital requisitioning and PO generation.
Procure to pay software
Known as P2P software, this covers more of the operational lifecycle and is often best for mid-market businesses.
Source to pay software
Known as S2P software, this also gives you upstream sourcing and contract management that’s needed by enterprises.
Why invest in a procurement system
A solid procurement system doesn’t just save you hours of manual work – it makes it easier to stay accurate and comply with HMRC requirements too. Xero automatically calculates the taxes on invoices, keeps digital records of transactions for your reporting, and organises data in one central place.
- Xero is HMRC-recognised and compatible with Making Tax Digital for VAT and Income Tax
- 90% of UK customers agree Xero helps them stay compliant
- Xero keeps a digital audit trail of all transactions, including your sales and purchases
Plans for growing businesses
Ignite
for the first 6 months
Then £18 per month
An easy financial foundation - track cash flow with the essentials.
- Send quotes and 20 invoices†
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Enter 10 bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for £0.20 per payment††
- Payroll for £1.50 per person
- 30 day cash flow forecast
- Visualise performance with basic graphs
- Company accounts and tax (optional £120 excl. Vat billed annually)
Grow
for the first 6 months
Then £39 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 5 payments
- Payroll for 1 person
- 60 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 1 user
- Company accounts and tax (optional £120 excl. Vat billed annually)
Comprehensive
for the first 6 months
Then £55 per month
Optimise profitability - tailor your insights for greater control.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 10 payments
- Payroll for 5 people
- 90 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 5 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Ultimate
for the first 6 months
Then £70 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 15 payments
- Payroll for 10 people
- 180 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 10 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Track time and costs for projects for 10 users
- Analyse KPIs and ratios
- Benchmark against the industry
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Not VAT registered? See plans for simpler business needs.View plans
Setting up procurement software
According to industry estimates, it takes a small business 4 to 8 weeks to set up procurement software. Here are the key stages if you use Xero.
Get started with your accounting
Think of Xero as your foundation. Connect your bank accounts for direct feeds and start creating purchase orders.
Connect procurement apps
Choose from a range of certified apps to handle jobs like order management and multi-channel inventory tracking.
Talk to Xero experts
Get a 1:1 onboarding session with a Xero Coach. And ask Xero’s 24/7 customer support team any questions from then on.
FAQs on procurement management software
Procurement software gives you digital tools that automate much of the purchasing process, from requisition to payment.
Xero handles some of the steps, including creating and tracking purchase orders and paying bills. For the rest, Xero connects with procurement applications, including those for specific industries.
Procurement software gives you digital tools that automate much of the purchasing process, from requisition to payment.
Xero handles some of the steps, including creating and tracking purchase orders and paying bills. For the rest, Xero connects with procurement applications, including those for specific industries.
Must-have features for procurement software are:
- approval workflows
- purchase order management
- invoice processing
- supplier management
- spend analytics
- integration capability
Xero has some of these features, like – including purchase order and invoice management. It connects to third-party apps to help with the others.
Must-have features for procurement software are:
- approval workflows
- purchase order management
- invoice processing
- supplier management
- spend analytics
- integration capability
Xero has some of these features, like – including purchase order and invoice management. It connects to third-party apps to help with the others.
According to industry estimates, entry-level SaaS tools cost £20–£50 per user per month. Mid-market P2P platforms cost £50–£150 per month.
Xero accounting software has clear pricing plans and allows unlimited general users at no extra cost. You also need to pay for third-party procurement applications.
According to industry estimates, entry-level SaaS tools cost £20–£50 per user per month. Mid-market P2P platforms cost £50–£150 per month.
Xero accounting software has clear pricing plans and allows unlimited general users at no extra cost. You also need to pay for third-party procurement applications.
All businesses can benefit from procurement software. No matter the size of your business, the software swaps manual work for slick, accurate workflows.
While Xero isn’t procurement software itself, it connects with procurement apps to give you an easy system for your financial admin and purchasing. Xero requires no accounting background and is easy to get going with.
All businesses can benefit from procurement software. No matter the size of your business, the software swaps manual work for slick, accurate workflows.
While Xero isn’t procurement software itself, it connects with procurement apps to give you an easy system for your financial admin and purchasing. Xero requires no accounting background and is easy to get going with.
Procurement applications easily connect with Xero. Visit the Xero App Store to consider the range of options and read user reviews.
It’s straightforward to connect the apps, and your financial data then flows into Xero for a joined-up system.
Xero also has some procurement tools built in. For example, Xero helps you manage your purchase orders and invoicing.
Procurement applications easily connect with Xero. Visit the Xero App Store to consider the range of options and read user reviews.
It’s straightforward to connect the apps, and your financial data then flows into Xero for a joined-up system.
Xero also has some procurement tools built in. For example, Xero helps you manage your purchase orders and invoicing.
Xero has built in procurement features, including for managing your bills. You can automate bill entry, pay suppliers, and track your payments from within Xero.
Xero has built in procurement features, including for managing your bills. You can automate bill entry, pay suppliers, and track your payments from within Xero.
It depends on which procurement applications you choose. Look for ones with specific data protection and HMRC compliance features.
Xero is HMRC-registered and set up for Making Tax Digital. Xero also:
- allows you to assign permission levels to your team members
- creates a digital audit trail for all your transactions
- protects your data with multiple levels of security, including multi-factor authentication at login
It depends on which procurement applications you choose. Look for ones with specific data protection and HMRC compliance features.
Xero is HMRC-registered and set up for Making Tax Digital. Xero also:
- allows you to assign permission levels to your team members
- creates a digital audit trail for all your transactions
- protects your data with multiple levels of security, including multi-factor authentication at login
ERP systems are built for general business management – covering finance, HR, supply chains, and more. Procurement software specialises in the purchasing workflow. Although some ERP systems include procurement modules, standalone procurement software usually has more sophisticated functions.
Xero is an accounting platform with both native procurement features and the ability to integrate with specialised procurement apps.
ERP systems are built for general business management – covering finance, HR, supply chains, and more. Procurement software specialises in the purchasing workflow. Although some ERP systems include procurement modules, standalone procurement software usually has more sophisticated functions.
Xero is an accounting platform with both native procurement features and the ability to integrate with specialised procurement apps.
Xero’s native procurement features
How about an all-in-one system for your procurement and financial admin? Xero has built-in features and connects to a range of apps.
Automated purchase orders
Use the Xero Accounting app or Xero desktop software to create, send, and track purchase orders.
Easy bill management
Automate your bill entry and pay suppliers using Crezco (enabled by open banking).
More than 1000 apps
Xero connects to certified apps, including specialist procurement tools.
Manage your finances easily with Xero
Xero offers powerful tools to manage your business finances and stay on top of your numbers. Explore Xero’s features to learn more.
