Beyond big business: Exploring three use cases for approval automation

Time and time again, I hear from bookkeepers that their clients ‘aren’t big enough’ to need approvals. This type of thinking holds so many businesses – of all sizes – back from experiencing the benefits of strong approvals and tools, like ApprovalMax, that support it.

For far too long, strong financial controls have been seen as the domain of big businesses, those with large finance teams and deep pockets. But financial controls, including approval processes, are needed by businesses of all sizes. Despite this, only one in four businesses has the right controls in place, according to ApprovalMax research.

With my clients, I focus on process efficiency and setting up the structures and systems that work best for their unique business, including building the right cloud-based tech stack. Sometimes, they put this off for far too long; many think they have to get to a certain size before they can use certain software but actually using the software might help them grow.

To give you real-life examples, here are three recent clients I’ve suggested ApprovalMax to, how I suggest they use it, and why:

1. The sports club

This local sports club moved to Xero and Dext a few years ago but struggles with controlling spend. The club only has one full time employee and is otherwise supported by a team of volunteers, so it’s important to do more with less.

Although they’re using budgets in Xero, unnecessary costs slip through the cracks and lead to budgets spiralling out of control. Currently, it takes the volunteer treasurer two days per week to manage the finances. With his term finishing up soon, this needs to be streamlined for the next person in the role.

Suggested approach:

• Start issuing POs via ApprovalMax, which will need to be signed off by the treasurer before issuing and checked against budgets to avoid surprises when final invoices come in.

• Reduce subscriptions by using ApprovalMax Capture to replace Dext when the purchases come in, including bill-to-PO matching, and push bills through approval before payment

What will ApprovalMax solve?

• With ApprovalMax, the treasurer can add a layer of security and limit access to Xero, while adding a more stringent approval process.

• The team can monitor budgets better and all spending will be signed off by the treasurer in advance before purchases are made.

• The audit trail will automatically save time by tracking each and every transaction for better continuity, especially when the volunteers switch over.

1. The media agency

At this fast-moving media agency, the team regularly shares quotes with clients on short notice. Sometimes, this means the quotes don’t go through the right approval process before sending to clients. It can also mean that quotes get lost in emails, or multiple versions are floating around. With an average 200 jobs a year, things get confusing – fast.

The agency also bills for extra time each month. Currently, one junior team member emails each and every client for confirmation before invoicing, then each invoice has to go through the right internal approvals.

Suggested approach:

• Roll out sales quotes using ApprovalMax and Xero to ensure all quotes are correct and checked internally before sending onto each client.

• Swap the POs to go through ApprovalMax so final invoices can be matched with the POs to tie every job up.

• Save time and use ApprovalMax Capture to extract data from ~200 jobs per year, instead of entering invoice details manually.

• Use additional reporting in ApprovalMax to track everything is linked together.

What will ApprovalMax solve?

• The team can make sure quotes are internally approved first so the business is not under- or overcharging each job, then signed off by clients every time using the sales quote function.

• Adding ApprovalMax will ensure costs are linked to POs, along with clear quote sign off, which ensures the team has full visibility across all processes.

• At the moment there’s no way to connect POs and purchases in Xero if they come in via a separate system – this will make sure they’re billed correctly and in the system.

1. The sweepstakes firm

This client, which admittedly is a relatively large business, already uses an approval automation tool. However, its limitations are seeing the team spend hundreds of pounds in excess fees each month. The firm processes 300 invoices each month with a huge amount of manual workarounds; for example, the tool’s OCR tool takes 24 hours to upload so can’t be used for tight deadlines, meaning they need to be manually input or circulated via email. 

Bills get stuck in the queue and far too often the team follows up via email since few team members actively check the current tool. All of this results in wasted time and resources, for both approvers and accounting staff.

Suggested approach:

• For continuity around controls, replace the current system with ApprovalMax and get all approvers to download the app.

• Build workflows for regular suppliers so they filter automatically and encourage the internal team to make comments directly in ApprovalMax.

• Build email rules on the accounts inbox and supplier rules in Dext to import bills faster.

What will ApprovalMax solve?

• It will speed up the processing time for incoming invoices, through Dext connected to ApprovalMax since they use QuickBooks Online.

• Currently, there are no supplier rules, which means each item needs to be coded manually. It’s easy to build workflows in ApprovalMax for different suppliers and amounts.

• The app will make it simple for approvers to see urgent items and the team can message directly in the system, rather than having to email.

Getting started

So, where’s the best place to start if you have a client that’s a good fit for approval automation? First, jump on one of the ApprovalMax product demos to see first-hand how the tool works – it’s much easier than you’d think! Next, start to think about your approval workflows and who needs to sign off on what. Once you’ve got that mapped out, it’s easy to build those workflows into ApprovalMax. That’s when you can get the ball rolling with a free trial, jump in and play around to see the difference it makes in automating approvals and building strong financial controls.

To learn more about ApprovalMax, visit our website, watch a product demo, or start your free trial.