Procurement

Tired of delays? Transform your approval process workflow with automation

Stuck waiting for approvals? An inefficient approval process workflow isn’t just frustrating—it’s costing you time and money. What if you could cut down on costly delays?

If your approval process feels like a bottleneck, you’re not alone. 

Manual workflows are prone to errors, miscommunication, and missed deadlines. But there’s a way to get your approvals moving faster.

Automating your purchase and spend approval workflows ensures faster decisions, fewer mistakes, and real-time tracking at every step. 

In this article, we’ll explore how automation can radically enhance your approval process, making it efficient, transparent, and hassle-free.

We’ll explore the common pitfalls of manual approvals, key components of automated workflows, and how an efficient procurement process can help your business save time and money.

What is a purchase approval process or spend approval workflow?

A purchase or spend approval workflow is a series of tasks that must be completed before a company approves an expenditure.

These workflows ensure all spending follows internal policies and budgets.

They help companies manage everything from purchase orders to capital expenditures.

Why is it important? 

A purchase or spend approval workflow organizes the process, ensuring decisions are made systematically. It also prevents rogue spending or unapproved purchases that could cause chaos later.

An approval workflow is made up of several key elements. You want to think of it as a well-oiled machine. Each part (or person) plays a crucial role in getting spending approved in a controlled way.

Why approval workflows matter to you

Approval workflows are vital for controlling spending and ensuring compliance with company policies. 

The benefits include:

  • Preventing unnecessary purchases.
  • Ensuring workflow spending stays within budget.
  • Reducing fraud risks as everything is tracked and verified.
  • Ensuring decisions aren’t delayed or based on guesswork.

When workflows are well-structured, you avoid costly mistakes and miscommunications. 

Workflows for approval process automation

Here’s where things get exciting—automation.

More and more businesses are adopting automated workflows to eliminate manual inefficiencies. Manual vs. automated approval process workflow to see why it happens.

Manual approval process workflow Automated approval process workflow
Time delays.
Slow approvals due to back-and-forth emails.
Faster decisions.
Streamlined approvals with automated routing.
Miscommunication and errors.
Higher risk of mistakes with manual data entry.
Reduced errors.
Accurate data through automated entry and checks.
Lack of transparency.
Uncertainty about the status of requests.
Real-time transparency.
Immediate access to request statuses.
Inconsistent approval criteria.
Varying standards lead to confusion.
Standardized criteria.
Consistent application of approval policies.
Scalability issues.
Processes can’t keep up with company growth.
Scalable processes.
Easily handles an increased volume of approvals.
Compliance risks.
Difficulty maintaining audit trails.
Enhanced compliance.
Automatic record-keeping for audits.

You can say goodbye to endless back-and-forth emails.

Automation helps route requests to the right people, sends reminders, and ensures that the workflow keeps progressing.

It’s faster, smarter, and just works better.

What are the common challenges with approval processes?

The procurement challenges are intricate and layered. And usually, they begin right with a new procurement request.

Time delays in the workflow approval process

Time delays are a huge problem. 

You’ve probably experienced it yourself, everything’s ready to go, but approvals drag on.

You’re stuck in endless emails, making multiple phone calls, and chasing up those elusive approval signatures.

And when someone is unavailable—you’re stuck! 

Automation speeds up the process so you never have to chase approvals again. It’s a win for your deadlines and sanity! 

Miscommunication and errors in the approval process

Miscommunication can be a huge nightmare.

You send an email. They miss it. Now you’re waiting.

With manual systems, crucial details can get lost in the shuffle—wrong information and incomplete forms.

A centralized system keeps everyone on the same page, reducing the likelihood of errors. 

Lack of transparency in approval workflows

Where’s the approval? Who’s reviewing it? 

A lack of transparency in workflows can leave everyone guessing. Requests can vanish and it becomes impossible to know what stage it’s at. 

Automated workflows offer real-time tracking, so you know exactly where your request is and who needs to act next. 

Inconsistent approval criteria in approval processes

Similar requests can, at times, get treated differently. With inconsistent approval criteria, feelings of frustration and confusion can quickly arise. 

You’ll have some strict managers. Others, not so much.

With standardized, automated criteria, you can ensure everyone is playing by the same rules. 

Scalability issues in approval processes

Growth is exciting, but it comes with challenges.

More employees. More requests. More bottlenecks.

What worked for a 50-person company doesn’t hit the same when you hit 500 employees. The requests pile up, and everything slows down.

Automating approvals makes sure your workflow scales as your business grows. No more drowning in paperwork or emails. Just smooth, scalable processes.

Compliance and audit in approval processes

Without proper tracking, compliance and auditability become a major challenge.

If you can’t produce records of who approved what, you could be in hot water during an audit. And that’s not a fun place to be.

With an automated approval system, every step is logged. This creates a clear audit trail. You’re always prepared when it comes to compliance.

Permissions and authority levels in approval management

Not everyone has the same authority. In manual processes, it’s often unclear who should approve what. 

Confusion reigns.

A junior manager approves a big purchase that should’ve gone to the finance team. 

Automated workflows assign the right approvals to the right people, making sure no one oversteps their authority. 

What are the steps of the spend approval process?

A structured spend approval process is essential for keeping your budget under control. 

It gives you a clear and repeatable system ensuring every expense is authorized and reducing the risk of overspending. 

Here are the 5 steps of the spend approval process.

Step 1: Request submission in the internal approval process

It all begins with submitting a spend request. 

You’ll need to provide the reason for the expenditure, the total cost, and vendor info. You’ll also want to include any supporting docs such as quotes or contracts.

Make sure the request has all the required fields filled out. It’ll save you from frustrating delays later on. 

Step 2: Approval chain in the approval flow

The request then moves through the approval chain. 

Depending on the size or type of the expense, it could be a quick approval from one person or several layers of management (think manager, finance, CFO).

Be sure your approval chain is rock solid, each person needs to know their role. Sometimes you’ll need input from multiple departments.

Step 3: Assigning permission levels in approval management

Not everyone’s got the same authority. This is where permission levels come into play – they make sure the right people are approving the right things.

You’ll assign permission levels based on the approver’s role, the size of the spend, and the department. 

A department head might handle small purchases. Larger expenses typically need higher-level approval.

Step 4: Setting timeframes in the approval process

Set firm deadlines for each approval stage. Make sure no one’s sitting on a request too long. If you need a reminder automated notifications are your friend.

The key is balance. 

Some requests are more complex and need extra time while others can be approved in a flash.

Step 5: Audit Logs and record keeping in the approval process

Transparency and accountability are crucial and maintaining accurate records is paramount, especially when auditors come knocking!

Every action in the approval process should be logged. 

Who approved it? When? Were there changes? 

You want to make sure your record-keeping system is thorough and secure. 

This puts you in good stead for audits, reviews, or anything else that may come your way.

How to create an automated approval process and workflow?

Why automate? 

It’s not just about speed. You’re aiming for efficiency, fewer errors, and full compliance.

Benefits include: 

  • No more manual bottlenecks
  • Fewer mistakes
  • Each step follows company policy

Here are 7 steps to create an automated spend approval process. 

Step 1: Assess current workflow rules and approval process

Before diving into automation, take a step back. You need to know what’s happening right now.

Assess your current manual workflow. Identify all the purchase types, departments, and dollar thresholds that require approval. Bring in stakeholders to pinpoint bottlenecks.

Where are things getting stuck? Look at the areas that slow you down the most. That’s where automation will make the biggest impact.

You’ll get a clear understanding of where your process is falling short. This becomes the foundation to build a system that works for everyone.

Step 2: Define key approval process steps

Now let’s map it out. You need to know who’s approving what and when.

Define each stage of the approval process. From the moment a request is submitted to the final sign-off. 

Use a questionnaire for stakeholders: “Who needs to sign off?” “Which purchases need multi-step approvals?”

Make sure you’re accounting for different needs. Some purchases might have a quick approval. Others might need an extra pair of eyes on them.

You’ll end up with a crystal-clear approval process with zero ambiguity.

Step 3: Select approval process workflow software

The right tool is crucial. It’s either going to make your life easier or give you a headache.

Look for automation tools that fit your company’s needs. 

The tool should: 

  • Handle custom rules 
  • Manage multi-step workflows
  • Send notifications and reminders

You’ll want to consider if the tool integrates with your current systems. Is it user-friendly? You don’t want something too complex.

You’ll eventually identify a powerful tool that slots right into your workflow. It automates approvals without adding extra layers of complexity. 

Step 4: Customize workflow rules and approval processes

Here’s where the magic happens. You’ll set up custom rules to fit your organization’s needs.

You’ll want to create rules based on criteria such as departments, spending amounts, or even geographic locations. 

Also, make sure to establish permission levels for different approvers. Who can approve what? Different departments might have more control over certain types of spending, so make sure your rules reflect this.

Step 5: Implement notifications and reminders in the approval workflow

Don’t underestimate notifications. They’re the secret sauce to keeping your process on track.

You’ll want to set up notifications to alert approvers when action is needed. Add reminders to nudge people if they’re holding things up.

Timeliness is key, but don’t overwhelm inboxes.

Step 6: Train stakeholders to ask for approval effectively

The best tool won’t work if no one knows how to use it. This is where training comes in.

Offer training sessions for managers, employees, and approvers. Make sure they know their role and how the system works.

Tailor the training based on roles. Some need deep dives, others just need a quick run-through.

It’s worth the investment. You’ll have a well-trained team that knows how to use the system. Smooth adoption means smoother processes.

Step 7: Monitor and optimize the automated approval workflow

Set it and forget it? Not quite. 

You need to keep an eye on things to make sure everything’s running like clockwork.

Monitor your workflow for any bottlenecks or inefficiencies. If something’s off, don’t hesitate to tweak it.

Track metrics like approval times, rejections, and delays. Use this data to continuously improve.

By the end of these steps, you’ll have an optimized and automated process that works like a smooth engine and not a tired old clunky machine. 

How does the approval process workflow software work?

The software doesn’t just tweak how approvals are managed, it completely transforms it. 

By cutting out manual inefficiencies, reducing delays, and minimizing human errors, the software takes the guesswork out of approvals. And with real-time tracking and transparency, you’ll always know where things stand. 

But how does it work in practice? 

Let’s use Spendbase as a real-life example, and see how its procurement workflows, along with Slack integration, get the job done.

Step-by-step overview of an automated approval workflow

Request submission in the internal approval process

It all starts with submitting a procurement request where employees fill out a customizable form in Spendbase.

The form is designed to capture everything. From the request type, vendor, and price, to the department and billing cycle. 

Routing to approvers in the approval flow

Once the request is submitted, Spendbase takes over. 

It automatically routes the request to the right approvers based on criteria such as department, expenditure amount, or request type.

Approvals can be sequential (each approver signs off one by one) or parallel (where multiple approvers review at the same time). 

But maybe you need something more tailored? Spendbase also supports hybrid workflows.

Approval actions to approve purchase requests

Approvers review the request and either approve or decline it. With Spendbase, they can do this either directly on the platform or via Slack.

Real-time notifications keep everyone in the loop, and automatic reminders make sure nothing gets forgotten.

Spendbase’s procurement approval process and workflow in action

Now let’s talk about Spendbase’s procurement process and how it simplifies the entire workflow:

  • Custom workflow setup. Spendbase makes setting up approval workflows that suit your company’s needs easy. Whether it’s a software purchase, service, or other expenses, Spendbase’s workflow wizard lets you tailor approval flows.
  • Types of approval flow. As mentioned earlier, Spendbase gives you options. You can set up sequential approvals, where requests go through one approver at a time. Or, go for parallel approvals, allowing multiple approvers to review a request simultaneously.
  • Tracking and transparency. Employees can easily see where their request stands, and approvers can see what’s moving through the system. Transparency like this ensures accountability and reduces confusion.

Spendbase’s procurement process streamlines the approval process from start to finish, reducing the time spent managing requests manually and ensuring that everything moves forward efficiently.

Integration with Slack for approvals workflow

Want to make things even easier? 

With Slack integration, approvers receive notifications right in their workspace.

They can quickly review, approve, or decline requests. This real-time capability speeds up decisions and keeps everything on track without platform-hopping.

The result? Productivity receives a major boost.

Takeaways

Here’s what to take from all the examples that we’ve considered to radically enhance your approval process, making it efficient, transparent, and hassle-free:

  1. Waiting for approvals is costing you more than time—it’s bleeding resources.
  2. Manual workflows leave room for errors, delays, and critical miscommunication.
  3. Automation adds speed, accuracy, and transparency at every stage of the approval process.
  4. Standardized, automated criteria eliminate inconsistency, so everyone plays by the same rules.
  5. With real-time tracking, you’ll know exactly where each request stands—no more guesswork.
  6. Automated notifications and reminders keep the process moving without your constant intervention.
  7. Scaling is seamless when your workflow can adapt effortlessly to a growing business.

So, whether you’re handling a handful of approvals or thousands, automation isn’t just an upgrade—it’s a game-changer that turns your workflow into a productivity engine.

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