Expense approvals might not be the most exciting part of running a team, but they’re one of the most important. Whether it’s reimbursing travel expenses or authorizing a big project spend, having a clear and efficient expense approval process keeps chaos at bay. But here’s the catch—as businesses grow, these processes often become overly complicated, leading to delays, confusion, and even frustration for everyone involved.

The good news is that simplifying expense approvals doesn’t mean sacrificing control or accountability. Instead, it’s about creating a system that works seamlessly for both teams and managers. This guide breaks down how to set up a streamlined process, making everyone’s day a little easier while keeping finances in check.

Understanding the Basics of Expense Approvals

An expense approval process is basically a roadmap for how costs get submitted, reviewed, and authorized within a company. It ensures that employee spending aligns with budgets, policies, and company goals. Without a well-structured system, things like unnecessary purchases or duplicate reimbursements can slip through the cracks.

For team members, a clear process removes guessing games. They know exactly what’s expected when submitting an expense, which speeds up reimbursement times and reduces back-and-forth emails. For managers, it provides the oversight needed to keep a close eye on budgets without micromanaging every spending decision. At its best, an expense approval process should feel more like teamwork and less like jumping through hoops.

Streamlining Submission

The first step in simplifying expense approvals is making the submission process as user-friendly as possible. No one wants to fill out endless forms or work with outdated systems. If submitting an expense feels like it takes forever, employees are less likely to do it correctly—or on time.

Consider using an expense management platform or software that makes submission quick and easy. Look for tools that allow employees to snap photos of receipts and upload them instantly via a mobile app. Automation features, like auto-categorizing expenses by type, can also save time for both employees and managers.

Transparency is key here. Employees should know exactly what information is needed upfront, such as receipts, project codes, or explanations for the expense. Clear guidelines mean fewer rejected submissions and less back-and-forth clarifying details later.

Setting Up Transparent Approval Pathways

One of the biggest bottlenecks in expense approvals often happens during the review stage. Who is supposed to approve what? How long should it take? When these questions don’t have clear answers, it adds confusion—not to mention delays.

To avoid this, establish clear approval pathways based on the type and size of the expense. For smaller amounts, a single manager’s sign-off might suffice. For larger or more sensitive expenditures, additional levels of review might be necessary. Either way, the process should stay predictable so no one feels like their request is stuck in limbo.

Document these pathways somewhere accessible, like in a company policy manual or within your expense management software. Clearly outlining approval timelines is also helpful. If employees know a decision will take three business days, they’re less likely to flood managers’ inboxes with follow-up emails.

Automating Workflows for Faster Approvals

Automation tools can be a game-changer when it comes to expense approvals. Instead of manually tracking receipts, approvals, and reimbursements, automated systems handle these tasks for you. They cut down on human error and significantly speed up the process.

For instance, automated workflows can be set up to flag expenses above a certain threshold for additional review while approving smaller ones instantly. These tools can also notify managers when an approval is pending and send reminders to keep things moving.

Think of automation as putting the tedious parts of expense management on autopilot. While managers still provide oversight, they spend less time on repetitive tasks and more time on high-level decision-making.

Balancing Compliance with Flexibility

Simplifying an expense policy doesn’t mean throwing caution to the wind. Companies need to make sure spending stays compliant with internal policies and any applicable regulations. However, rigid rules can frustrate employees, especially when they create unnecessary roadblocks for urgent or reasonable expenses.

The sweet spot lies in balancing policy enforcement with employee flexibility. One way to achieve this is by setting clear expense limits or categories. For example, within a certain budget range, employees could be pre-approved to spend on things like travel or client meals without needing additional approval.

Flexibility doesn’t mean giving employees a blank check, but it does mean trusting them to make reasonable decisions within defined boundaries. This not only builds trust but also reduces the number of requests clogging up the approval pipeline.

Tracking and Analyzing Data

A simplified expense approval process shouldn’t only make things easier in the moment; it should also provide valuable insights for long-term improvements. By tracking expense data, managers and finance teams can spot spending trends, potential inefficiencies, or areas where budgets might be slipping.

For instance, if analysis reveals that a specific department routinely surpasses its travel budget, it might be time to revisit how those funds are allocated. This type of oversight doesn’t just prevent overspending. It also helps leadership make informed decisions based on hard data rather than guesswork.

Modern expense management tools often include built-in reporting features that make this tracking easier than ever. Regular reviews of these reports help keep spending aligned with company priorities and identify ways to refine the approval process even further.

Encouraging Feedback

Even the best-designed systems benefit from feedback. Employees and managers on the front lines of expense approvals can often provide insights into what’s working and what’s not. Regularly reviewing feedback helps refine the process, ensuring it continues to meet everyone’s needs without creating unnecessary bottlenecks.

Invite employees to share their experiences, whether through quick surveys or informal conversations. Was the process smooth? Were there any hiccups that slowed them down? Similarly, ask managers for input on the approval system. Do they feel overwhelmed by requests, or is the process working as intended?

By staying open to tweaks and improvements, companies can keep their expense approval systems running smoothly without letting minor frustrations pile up for their teams. Simplifying the process doesn’t just streamline operations; it creates a workplace where finance runs efficiently, and teams are empowered to focus on what they do best.