Glossary

What is an invoice approval workflow?

By Tim White · Last updated

An invoice approval workflow is the path an invoice takes from arrival to cleared-to-pay: who reviews it, who signs off, and in what order. A good one routes each invoice to the right approver, records the decision, and does not force people into a system they never otherwise open.

Where it usually snags

The steps are capture, code, route, approve or reject, pay. The friction is almost always the approval step, when the approver is an owner or partner who lives in email, not the finance tool. So the invoice sits.

Keeping it out of everyone's way

InvoiceJet handles approvals by email. Send an invoice to an approver, they click approve or reject, no account needed, and the record updates. The invoice is already extracted and verified, so they decide on clean data instead of squinting at a PDF.

The two mistakes that stall it

The first is approval with no record. Someone says yes in a hallway or on a call, and months later nobody can say who authorized the payment when a vendor disputes it. Recording the decision against the invoice fixes this, so the workflow doubles as an audit trail.

The second is a single approver who travels. If every invoice routes to one owner and that owner is out for a week, the whole queue waits. Name a backup so sign-off does not hinge on one person's calendar.

Common questions

Do approvers need a login?

No. Email approvals let anyone approve or reject from the message itself, so you are not provisioning seats for occasional sign-offs.

What are the steps in an invoice approval workflow?

The usual steps are capture the invoice, code it to the general ledger, route it to the right approver, approve or reject, then release it for payment.

Who should approve an invoice?

Usually the budget owner or manager responsible for that spend. A good workflow routes each invoice to that person automatically rather than through a single bottleneck.

Sources

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