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How to improve your invoice approval workflow: tips for better control

By Justin Campbell

July 25, 2018

Invoice approval workflows are where things often get messy when it comes to managing your business’ finances. From missed emails to misplaced invoices, traditional methods can quickly turn into a frustrating maze of delays and errors.

But here’s the truth:

Outdated workflows don’t just waste time – they cost money, strain vendor relationships, and cause unnecessary headaches.

Whether you’re a small team or a growing company, an efficient workflow isn’t just a nice-to-have; it’s a must for keeping your finances on track.

This guide is all about practical steps you can take to improve your invoice approval workflow. We’ll break down common roadblocks and show you how to build a process that’s faster, simpler, and works for everyone involved.

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Is your invoice approval process broken?

The reality is that, today, most invoice approval processes are still paper and email-based. This means that, no matter how innovative your accounting platforms and processes are, there remains the possibility of a critical process bottleneck.

Relying on hard-to-track paper invoices, and bloated, unwieldy email chains makes manually tracking an invoice approval status a nightmare. This can result in the need to chase unresponsive approvers via phone calls, voicemails, and (more) emails – a most unwelcome distraction.

And things get even worse when you factor in geographically distributed companies or remote workplaces. The more complex the approval hierarchy, and the more exemptions you have in your invoice approval process, the lower the likelihood that your finance manager will sign off on important documents on time.

If this sounds familiar, then your invoice approval process is in desperate need of repair.

Here’s how you fix it in two simple steps:

Step one: Identify invoice approval time-wasters

The first step in solving any problem is admitting that there is one. So, to improve your invoice approval process, you need to first pinpoint the major obstacles.

Often, these will look something like this:

You need to manually orchestrate the approval workflow. All approval related information needs to be collected, and email chains need to be created and run over and over again for each approval thread.
You need to chase and cajole approvers. A schedule of email notifications needs to be created and maintained. You also need to track approver availability and approval statuses.
You need to prepare management and audit reports. Multiple email chains need to be surfed through in order to reconstruct the approval decision history, and filter out the required data.

In short, relying on email as the linchpin of your invoice approval process will leave you chasing your tail. It’s costing you too much time, and too much money. It needs to be replaced.

Step two: Introduce a cloud-based invoice approval workflow

Introducing ApprovalMax’s invoice approval software to replace paper and email-based approvals will be a game changer for your business. But don’t just take our word for it:

Before we started using a cloud approval workflow app, our invoice approval process involved printing out receipts and handing them over to the responsible managers for their signature, which required a fulltime person to manage that.

Sebastian McLarin

Financial Controller, Icehouse

Read full case study

If, like Sebastian, you’re fed up with being at the mercy of an inefficient approval process, switching to a cloud-enabled approval workflow is a great alternative.

Such apps allow you to set up and run sophisticated approval processes, all while being incredibly easy to use. They enable multi-step and multi-role approvals, handle exceptions in your approval process, define requester and approval rights, produce status and audit reports, and much, much more.

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Benefits of a cloud-based invoice approval workflow

Upgrading your invoice approval workflow can make a big difference. Here are the key benefits your team can expect:

Process automation

Most accounting sign-offs need several people with different authority and authorisation levels to make decisions. Often, these are on multiple parallel approval levels.

A cloud invoice approval app provides an easy-to-set up workflow that allows you to define conditional, parallel, and sequential approval flows depending on the organisational, accounting, and other business rules your organisation has in place.

Once defined, these workflows run automatically and route approval requests to the right people, without you having to manually do it via email.

Automatic notifications

Chasing approvers is frustrating and time-consuming. Things are even worse for multiple-entity and/or geographically distributed companies, and if teams operate from remote locations.

A cloud approval app will provide email notifications, making sure all approvers are notified in a timely manner, and followed up for outstanding requests.

There is absolutely no need to keep track of the approval schedule or physically chase approvers; the approval workflow app does it for you!

Built-in exception handling

For every review and approval process there can be exceptions. Sometimes, for example, approval requests need to be delegated to a different approver, either because the regular approver is currently unavailable or a particular approval needs to be performed by someone outside of the usual approval workflow.

A modern cloud approval app will help you handle all of these cases. You can set a default approver to make sure no approval request goes unattended; you can delegate the approval decision to another approver as an exception; and you can redirect the approval request to someone else if the designated approver is unavailable.

Unlike email, if handled within a workflow app, exceptions become part of a standard process with full traceability of approval decisions and complete audit readiness.

Built-in reporting

As the owner of the approval process, you need to be constantly aware of the approval progress status, ideally being able to identify process bottlenecks and forecast approval delays.

A cloud approval app captures the step-by-step approval process and provides a detailed history trail for internal review purposes.

Once defined, the reports will pull all the information you need and present it in an easy-to-understand format for management to review.

Built-in audit logs

The approval of each document and all related data such as the name of approver, date of approval, and approver comments are captured by the approval workflow app so you can save time and simplify your audit preparation.

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Why use cloud invoice approval workflows in your firm?

The key benefits gained by switching from paper and email-based approval tracking to one that’s driven by a cloud invoice approval workflow are striking.

Higher process efficiency and productivity

More transactions are performed in less time. Less effort is spent on clarifications or searching for missing information. Notifications and reminders prevent delays.

Full control and visibility

The approval process is kept on the surface. All financial documents have a clear approval status with no need to refer to email for an approval status check.

Ensured compliance and simpler audit preparation

Approval workflows are configured in exact accordance with regulatory authorisation requirements. Approval history is captured in detail and can be provided in audit-ready form.

Enhanced security

Approvers are taken out of the accounting software. Guardrails are provided for approval decisions to make sure all approvals are performed in accordance with the authorisation level.

Build a smarter invoice approval workflow today

Ready to streamline your invoice approvals and unlock new efficiencies? Now’s the time to get started.

ApprovalMax does everything described above, and more. And with seamless Xero and QuickBooks integrations, it can slot in as an important part of your overall accounting workflow. Explore how a solution like ApprovalMax can transform your process and give your business the edge it deserves.

Justin Campbel, an experienced accountant with a decade at Xero, blends his deep understanding of finance and technology to simplify processes. He uses his expertise to help businesses work smarter, bringing precision and innovation to every initiative.

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