Expense Approval

What is expense approval?

Expense approval is the review and authorization of employee-incurred costs before reimbursement or after corporate card charges. Approvers verify that expenses are legitimate, comply with policy, and have proper documentation. The approval process catches inappropriate spending, ensures policy compliance, and creates accountability for costs charged to the business.

Designing an approval workflow

Define who approves whose expenses. Typically, direct managers approve team members' expenses. The owner or CFO approves manager expenses. No one should approve their own expenses. Set thresholds if larger amounts require additional review. Establish turnaround expectations so expenses do not languish unapproved. Balance thoroughness against processing speed.

What approvers should check

Verify receipts are attached for amounts above your threshold. Confirm the business purpose is documented and legitimate. Check that the expense category is correct. Ensure amounts are within policy limits. Flag duplicate submissions. Question unusual patterns. Approvers are the last line of defense before money leaves the company. Take the responsibility seriously.