How to Buy Smarter, Pay Smarter, and Keep Your Agency Profitable
- Thomas Capra
- 17 hours ago
- 4 min read
“Well, apparently, I was supposed to be keeping an eye on the money!” - Johnny Rose, from the hit TV series, "Schitt's Creek"
If you’ve ever watched the TV show Schitt’s Creek, you’ll remember that it opens with the wealthy Rose family losing everything. In Season 1, Episode 1, Johnny Rose — the father and family patriarch — discovers that their trusted business manager has run off with all their money. Shocked, he blurts out: “Well, apparently, I was supposed to be keeping an eye on the money!” It’s a funny line in a sitcom, but it also can hit close to home for agencies.
Because here’s the truth: even if you’re not running a global video rental empire, agencies of all sizes can end up in their own version of “Schitt’s Creek” if no one is watching how money flows out the door. That’s where a smart procurement-to-payables (P2P) process (also called “procure-to-pay” or “P2P”) comes in — it’s the behind-the-scenes system that keeps spending under control, vendors paid on time, fraud risk low, and your profitability intact.
Let's dive in:
In every agency, there’s a constant flow of purchases: new computers, a new SaaS subscription, a freelance designer, stock photography, ad spend. These might seem like small day-to-day decisions, but together they make or break profitability.
Don’t let the finance jargon of "procure-to-pay" scare you — it simply means:
“A smart way to buy what you need, approve it, and pay for it — without wasting time or money.”
When agencies get this right, they avoid budget surprises, keep vendors happy, and gain a clear view of where money is going. When it’s sloppy, the opposite happens: double payments, unapproved (and even fraudulent) spend, and late invoices.
What the P2P Process Looks Like in an Agency
Think of P2P as the journey from “I need this” to “the vendor is paid.” In practice, it looks like this:
Someone realizes they need something (a computer, contractor, or stock footage).
They submit a quick request for approval.
Once approved, a purchase order (PO) is created — your official promise to pay.
The vendor delivers what you ordered.
The vendor sends an invoice.
Finance checks: does the invoice match the PO, and did we receive what we asked for?
If all is good, payment is released.
Finance records it to the right project or client so you know your margins.
That’s it — nothing complicated. But the way you design the process makes the difference between speed and absolute chaos.
Keys to an Agency-Friendly P2P Process
Agencies don’t need endless red tape. What they need is just enough process to stay in control without slowing the creative flow. Here’s how:
Keep the rules short and clear: Define who can approve what, when a PO is required (vs. when a corporate card can be used, etc.), and what vendors are pre-approved.
Tier approvals by size: Let small, low-risk buys move quickly, while bigger spends get extra eyes.
Encourage teamwork between finance and operations: Finance shouldn’t be a gatekeeper — they should be a partner.
Automate the boring stuff: Use software to generate POs, route invoices, and handle matching so no one is stuck chasing email approvals.
Balance control with speed: Put in fraud-prevention checks, but also allow for urgent approvals when deadlines demand it.
Use the data you already have: Track who you’re spending with, how long approvals take, and where overruns happen. Then use that info to negotiate or improve processes.
Review and refine regularly: Ask staff what feels clunky, tweak thresholds, and keep improving as the agency grows.
Common Pain Points (and How to Fix Them)
Most agencies struggle with the same P2P headaches. The good news? They’re fixable.
“Approvals slow us down.” → Create fast-track rules for small purchases or pre-vetted vendors.
“We’ve got too many tiny vendors and subscriptions.” → Consolidate into a vetted vendor list and pre-approve certain categories.
“Invoices never match purchase orders.” → Use smarter software that can handle description differences (or allow quick manual reviews with notes).
“Our systems don’t talk to each other.” → Invest in tools that integrate with your accounting or project management systems.
“Vendor onboarding always delays payments.” → Collect tax forms and banking info upfront before the work starts.
Why Leadership Should Care
Optimizing P2P isn’t just about “keeping finance happy.” It directly impacts agency performance:
You reduce overspending and avoid duplicate payments.
You improve cash flow visibility (no surprise bills).
You lower the risk of fraudulent spend (caused from inside or outside the organization).
You strengthen vendor relationships by paying accurately and on time.
You get clearer project profitability by tying spend directly to clients.
You scale faster without drowning in messy approvals or unpaid invoices.
A Practical Rollout Plan
You don’t need to overhaul everything overnight. Try this phased approach:
Phase 1
Map your current process.
Write a version 1.0 “how we buy things” guide (a.k.a. a P2P Policy Manual).
Pilot it with one department.
Phase 2
Enhance your P2P Policy Manual based on learnings from the pilot.
Roll out agency-wide.
Introduce a tool to automate approvals and invoice routing.
Train staff on how it works.
Phase 3
Track results: How long do approvals take? How many exceptions get flagged?
Gather feedback from teams and vendors.
Adjust thresholds and policies.
Use spend data to negotiate better vendor terms.
The Bottom Line
A good procurement-to-pay process isn’t about slowing people down with red tape. It’s about giving your teams clarity, speed, and control — so you can protect margins, manage cash better, and keep clients happy. It is also a maturing process and should improve and evolve over time as your company grows.
When agencies implement even a light version of this, they spend smarter, scale smoother, and stop leaving money on the table.
As always, I’m more than happy to provide some additional perspective and guidance.
Now, get out there and do some extraordinary things.
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