AP Automation and Invoice Approval Policies

Accounts payable is more than entering invoices and paying bills. A well-managed AP process should help a company know what it owes, who approved it, and whether the payment should be made.

AP automation makes this process easier by capturing invoice information, organizing invoices, routing them for approval, and maintaining a record of what happened. Invoice approval is an important part of this process because it adds a layer of financial control before money leaves the company.

Why Approving Invoices Is Important

Not every invoice should automatically be paid simply because it was received. An invoice may need to be reviewed by a department manager, controller, owner, or another authorized employee.

Approval policies help answer questions such as:

• Is the invoice legitimate?
• Was the purchase authorized?
• Is the amount within the employee's approval authority?
• Does the invoice belong to the correct department or company?
• Does a larger invoice require additional review?

Having a defined approval process can also reduce the risk of unauthorized payments and provide documentation for future review.

Set Up Your Company's Approval Policies

Before configuring Easy Invoice Manager, establish the approval rules your company wants employees to follow.

Start by identifying who is responsible for approving invoices and determine whether approval requirements should change based on the invoice amount, department, or employee role.

For example, a company might establish these policies:

• Invoices under $1,000 - Department Manager
• $1,000-$5,000 - Department Manager and Controller
• Over $5,000 - Controller and Company Owner

These are examples only. Each company should establish approval limits appropriate to its own organization and internal controls.

Configure Policies Using Approval Tiers

Easy Invoice Manager allows approval policies to be organized into tiers. A tier can use financial and role-based filters to determine who should participate in the approval process.

A financial filter might specify that invoices above a certain dollar amount require additional approval. A role-based filter can identify the type of person who should approve the invoice, such as a Department Manager, Controller, CFO, or Owner.

This creates a structured workflow instead of relying on employees to remember which invoices require additional approval.

As invoices move through the approval process, the appropriate approver can review the invoice and take the required action.

Why You May Need More Than One Approver

Many businesses need more than one person involved in invoice approval. For example, the person responsible for a department may understand whether the purchase was appropriate, while the controller may be responsible for financial oversight.

Using multiple approvers creates separation between operational and financial responsibilities. It can also be useful for larger invoices, unusual purchases, or invoices requiring management authorization.

The number of approvers a company needs depends on its organization, purchasing policies, invoice volume, and internal controls.

Approval History and Audits

Keeping a record of invoice approvals becomes particularly important when an invoice needs to be reviewed later.

Easy Invoice Manager maintains approval information associated with the invoice. This allows authorized users to review the approval history and see the progression of the invoice through the approval process.

During an audit or internal review, the approval history can help document who reviewed the invoice and what happened during the approval process.

Instead of relying on email messages or paper records, the approval history provides a centralized record associated with the invoice.

Choose the Number of Approvers You Need

Easy Invoice Manager offers several approver subscription options:

This allows a company to start with the number of approvers it currently needs and expand as its approval process becomes more sophisticated.

With AP automation, invoice approval becomes a defined business process rather than an informal step. By establishing policies, configuring approval tiers, assigning appropriate approvers, and maintaining approval history, a company can create a more organized and accountable accounts payable workflow.