The Secret of Getting Invoice Approval Workflow Right

Let’s face it. Managing approvals can be a laborious and time-intensive process prone to errors if done manually.

In the absence of a proper workflow, there comes a disconnect between the goals of businesses and their procurement teams.

If obtaining an approved purchase order through the designated process takes too long or is too cumbersome, procurement teams will resort to side-stepping the official process – this can lead to mis-managed spending.

Here is a list of key obstacles that manual invoice approval workflows can cause:

Mistakes with Manual Entry:

Manual discrepancies can lead to overpaid or underpaid invoices. Moreover, manual data entry is time-consuming.

Slow Approval Process:

Manual invoice approvals can cause delayed payments. Such delays can dent supplier relationships.

Lack of Visibility:

It can be difficult to track the status of the invoices if your organization is still following a manual invoice approval process. This can, in turn, make it difficult to provide suppliers and contractors with an estimated payment clearance time.

Vulnerability to Fraud:

Fraudulent billing is one of the biggest challenges faced by accounting departments during manual invoice processing. From invoices that don’t match the expenses to manually tampering invoices.

Automating Invoice Approval Workflow Using a Procurement Software

Here are the benefits of procurement software would yield while automating invoice approval workflow:

Centralized Management:

A modern procurement software acts as a central platform for tracking and management of all purchase and spend requests from multiple departments while also connecting suppliers.

Flexible Approval Workflows:

Platforms allow organizations to design approval workflows that suit their enterprise processes. These workflows can be customized to match various scenarios, as well as modify approval chains and set dynamic spend limits and conditions as appropriate.

Enhanced Visibility:

Automated approval workflows make sure that spending goes through rigorous evaluation throughout the requisition and order process. Additionally, features in procurement software such as re-routing and escalation can enable users to track progress and manage approvals in real time.

Real-time Notifications and Dynamic Routing:

Expedite real-time notifications on requisitions and orders statuses for timely and informed decision-making. Moreover, dynamic routing is used to adjust workflow based on the requester’s role, function or location, thereby eliminating manual updates and improving operations.

Improved Compliance and Efficiency:

A procurement software helps businesses boost compliance with internal policies and regulatory needs.

Flexibility and Performance:

They also allow you to adjust approvals and make changes as your business evolves. Workflows can increase operational efficiency, maximize the use of resources and support company strategy.

To Sum Up

Manual invoice approval processes are inefficient and hinder optimal spend management. These processes are also susceptible to errors, do not offer visibility and lead to delayed payments denting supplier relationships.

Modern procurement software offers a reliable solution by automating the entire approval process. Such software centralizes invoice management, facilitates the creation of customized approval workflows and boosts collaboration. The results are improved efficiency, increased compliance and a robust financial control environment.

Explore GEP’s Automated Invoice Approval Workflow.