Create and Implement a Super Streamlined Expense Approval Process in Your Organization
The Expense Approval Process in an organization should be very quick, automated, streamlined and easy to understand. Any kind of chaotic behavior in expense workflow can cause lots of ripples in your business process because when expenses are not approved in time by the managers, team leaders or finance team, it tends to delay the work of multiple teams.
A slowdown in the approval process could further lead to disorder among teams, lack of money to buy resources which in turn eventually reflects on your customer service and responding to vendors in time.
Some Common Expense Management Issues
Wrong Budget Management
While the term automation is being repeatedly used when it comes to approving expenses, no manager can simply approve every request that comes to his or her table. They have to verify with the monthly and yearly budget, check the Opex (operational expenditure) reports and go through a bundle excel sheets to make sure it is proper. A wrong move could create havoc if the wrong items are approved and the more essential ones are left with no cash to make a purchase.
That brings us to the next step! A manager cannot approve an expense because there is enough spare cash or space in a budget. There are so many aspects to look into such as longterm money management, unexpected future expenses and running costs before making any lavish purchases. Only the direly essential can be approved immediately but everything else should be considered on a priority list. Wrong budget management could have invariable negative effects on an organization’s financial situation.
Improper Distribution of Approved Expenses
An approved proposal and budget should be properly carried out until the purchase is made. In case, an approval is done for five computers, the components should be purchased without exceeding the budget. They are also supposed to be delivered to those who need it in a timely manner. Any delay in it could cause lack of production, improper usage of available resources and the workforce losing patience when they don’t get the necessary tools, be it software, hardware or other support dutifully delivered to them. A slow process for employee reimbursement will also affect productivity.
Too Much of Pending Approvals
Depending on the size of the finance team and the type of services offered by the organization, there may be an approval overload that they find it very difficult to handle. If they are expected to verify excel sheets and other documents manually every time, it becomes extremely tedious for everyone involved, especially the finance team and managers who are in charge of approving it. The more the workload is, the higher the chances of errors. They may not be able to approve everything or reject all requests to get work done on time because each document requires personalized attention besides a good understanding of how critical it is.
The Contents of an Expense Approval Form and its Phases
It all starts with an expense approval form which is usually found as a template in the software. You will also have the freedom to fully customize it as required.
- The approval form will be accessed by the employee where he or she will fill in the expense claim along with attachments.
- The supporting documents will help get a clear idea of why is it important
- The manager can either choose to approve or reject it
- The reason will be specified by the manager if it is rejected
- Approved expenses will be forwarded to the accountant and the finance team
- They will also be recorded either as a team expense or individual expense based on the nature of the request
The Benefits of Using an Automation Software for Expense Approvals
Using a workflow management software for expense approval process,
- Improves transparency
- Saves time
- Simplifies auditing
- Speeds up approval
- Provides budget overview
- Reduces overload
- Makes reports accessible
With so many benefits associated with it, implementing expense approval flow in Cflow to streamline work and save time while allowing your employees to get their queries solved quickly is one of the best things that you could do in your organization.
Cflow is an All-in-one software you will ever need and with it, it will bring in a slew of changes by moving all your paper documents to a digital version. Managers will find it easy to go through the available budget while employees can keep track of their requests. It’s a win-win situation for all when business process management is implemented.