As organisations in Singapore seek greater efficiency and accuracy in managing financial transactions, finance teams are increasingly adopting technology to streamline approval workflows. These workflows play a crucial role in both vendor invoice management and employee expense claims, enabling seamless processing and oversight. This article explores what approval workflow automation is, its benefits, various types of workflows, their stages, and how to build an effective approval process for both vendor invoices and employee expenses.
Before we get to automation, let’s start with approval workflow, which refers to a structured process through which documents, requests, or transactions are reviewed and authorised by designated personnel. This can encompass a variety of transactions, including expense reimbursements, purchase orders, vendor approvals, and employee expense claims. Essentially, it ensures that all necessary approvals are secured before a transaction is finalised.
With approval workflow automation, these processes are digitised, significantly reducing the need for manual intervention. Automation uses software to route documents automatically to the correct approvers based on predefined criteria. This includes an approval matrix, a framework that defines the hierarchy and specific approvers required for different types of requests. For instance, a supplier invoice might need approval from both a department head and the finance team, while an employee expense claim may require only a direct manager’s authorisation.
By establishing an approval matrix, organisations can streamline the routing of requests, ensuring that the right individuals are involved in the decision-making process. This not only enhances efficiency but also ensures compliance with organisational policies and regulatory requirements.
Implementing approval workflow automation brings numerous advantages, particularly in managing vendor invoices and employee expense claims. By automating these processes, finance teams can enhance operational efficiency, ensure compliance, and reduce costs. Here are some key benefits:
Understanding the different types of approval workflows is crucial for effectively managing various financial processes within an organisation. Each type serves a specific purpose and addresses distinct needs.
These workflows manage the approval process for employee expenses, ensuring that all claims are legitimate and within budget. By automating this process, organisations can reduce the time spent on manual checks and enhance accountability.
Purchase order approval workflows streamline the process of approving purchase orders. This enables finance teams to maintain control over spending and ensure that all purchases align with the organisation's financial goals.
Vendor approval workflows ensure that new vendors meet company standards before being approved for payment. This protects the organisation from potential fraud or compliance issues by ensuring that only reputable vendors are engaged.
Automating the approval of contracts ensures that all legal documents are reviewed and authorised by the necessary parties. This minimises the risk of overlooking critical terms and conditions, safeguarding the organisation’s interests.
Budget approval workflows help finance teams efficiently manage and approve budget requests, aligning them with company goals. This ensures that all financial plans are thoroughly evaluated and appropriately funded.
Every approval workflow consists of several key stages that guide requests from initiation to completion. Understanding these stages is vital for effective management and oversight. Having an existing approval matrix can greatly enhance this process, as it defines the hierarchy and specific approvers for various types of requests, ensuring that the right people are involved at each stage.
Creating an effective approval workflow requires careful planning and consideration.The following steps can help ensure that your workflows are efficient and aligned with organisational goals.
One effective solution for automating approval workflows is Summit. This comprehensive platform offers features specifically designed to streamline approval processes for vendor invoices and employee reimbursements. With Summit, finance teams can easily set up automated workflows that ensure all requests are routed to the correct approvers, significantly reducing the time and effort involved.
Summit’s real-time tracking capabilities provide visibility into the approval status and a comprehensive audit trail, enabling finance teams to make informed decisions and generate reports faster. Additionally, its integration with other financial systems ensures that all data is accurate and up-to-date, further enhancing operational efficiency.
Ready to transform your approval workflows? Get in touch with us today to discover how Summit can help your organisation streamline vendor and expense approval processes for greater efficiency and compliance.