Have doubts about expense approval flows and want to learn more? We have you covered in our FAQ section!
Q. What is an expense approval system?
An expense approval system is a hierarchy put in place to ensure that any expense undertaken on behalf of your business is as per budget and approved by the right authority. It ensures that the expense is for the company's benefit and that the expense is checked, approved, and paid on time. An expense approval system ensures that your business expenses are optimized, and an audit trail is created to meet compliance needs
Q. How to set an expense approval process?
Depending on the type of spend, the urgency of the expense, and the impact it will have on the running and reputation of your business, you can set expense approval processes. For instance, payment of expenses like taxes, insurance, etc., are urgent and unavoidable. You need to have an approval system that will check and approve the time within the given timeframe. You can have a multi-layered system for approvals for expenses like employee engagement, as this is not an urgent expense in most cases
Q. Why does a business need expense approvals?
A business needs to have expense approvals to optimize spend, reduce costs, and have an audit trail mechanism in place to meet commitments and ensure compliance.