Does QuickBooks have an Approval Process?

The approval process in QuickBooks is simple and easy. It helps businesses monitor and authorize expenses. Additionally, it facilitates effective budget management.

QuickBooks Online Advanced launched workflows-these workflows direct documents for evaluation before sending. Presently, workflows are relevant to customer invoices only. Only pre-defined templates can be used. However, customizing the workflows is limited to preset options.

The primary objective is to allow a basic review process. An appointed reviewer should authorize the invoices before dispatching them.

How to Build an Invoice Approval Workflow?

Invoice approval workflows in QuickBooks follow a standard setup. Here are the steps to build an invoice approval workflow:

1. Describe the Cause: Choose an action to initiate the workflow, like the creation of an invoice.
2. Define the Approval Conditions: Set the conditions required for approval.
3. Allocate Approvers: Allocate a person to authorize the transactions.
4. Explain Actions: Define actions after meeting the criteria, like sending approval request.
5. Include Alerts: Set up notifications for stakeholders.
6. Run Workflow Test: Test scenarios to confirm proper behavior.
7. Improve Workflow: Change rules depending on practical workflow performance.

Note: To build it in QuickBooks, navigate to Workflows > Templates > Create Custom Workflow.

How are Invoice Approval Workflows Built in QuickBooks?

QuickBooks Online Advanced helps to build approval workflows. Using the Workflow feature, QuickBooks Online Advanced creates the approval workflow.

Here are the steps to set up the bill approval workflow:

1. Head to the option “Workflow“.
2. Now click the “Templates” option.
3. Choose the option “Set up Bill Approval“.
4. Set a title for the workflow.
5. Describe the actions, such as sending for approval.
6. Allocate approvers to authorize.
7. Specify trigger rules.
8. Include additional conditions if needed.
9. Confirm and initiate the workflow.

After activation, QuickBooks verifies the bills based on the rules. It marks bills for approval and alerts approvers.

Does QuickBooks Online Support Approval Workflow for Purchase Orders?

No. QuickBooks Online does not support approval workflow for generating or sending purchase orders. It is possible to establish a manual review system using these steps:

1. Create a Requisition Workflow:- Employees file requisition requests for approval.
2. Approval via Email:- Managers use email to approve requests, causing slowdowns.
3. Generate Purchase Orders in QuickBooks:- Once approved, manually generate purchase orders in QuickBooks.

Manual processes are incompetent because employees often fail to remember the steps. Since managers handle too many approval requests, manual processes can lead to workflow delays.

Does QuickBooks Online Advanced support an Approval Process?

Yes. QuickBooks Online Advanced includes an invoice approval process.

Set up a vendor profile and allocate an approver. The approver receives a notification when an invoice is ready for evaluation. Approvals are handled in the Tasks tab manually. The system alerts users but lacks automation for additional workflows.

What is the Invoice Approval Procedure for QuickBooks Desktop Users?

QuickBooks Desktop Enterprise enables approvals for custom invoices. However, other versions of QuickBooks Desktop do not offer approval workflow functionality.

A QuickBooks Desktop Enterprise user can perform the following:

1. Generate Vendor Profiles.
2. Allocate the approvers.
3. Establish approval triggers.

Approvers receive notifications when invoices require approval. They can accept or refuse the invoice bills. However, only one level of approval can be automated.

Shortcomings of the QuickBooks Approval Process

Here is the list of limitations for QuickBooks approval workflows:

• Workflow is relevant only to invoices.
• Limited customization reduces process flexibility.
• Offered exclusively in QuickBooks Desktop Enterprise and QuickBooks Online Advanced.
• Allows only one level of approval.
• Unavailable approvers cause approval delays.

Note: Approval workflows for purchase orders, leave requests, and multi-level workflows are absent in QuickBooks.

How to Address QuickBooks Approval Limitations?

Use specialized approval tools with QuickBooks. The dedicated software must perform the following:

• Monitor and authorize all expenses.
• Align with business workflows.
• Use mobile apps to provide real-time approvals.
• Enable workflows with several approvers.

Note: Using this software speeds up approvals and boosts control.

Best Practices for Invoice Approval Workflows

Here are the best practices to follow to generate effective approval workflows:

• Address issues like unapproved vendors and overpayments.
• Set dollar limits to skip minor approvals.
• Allocate the right approvers with precise permissions.
• Enable auto-notifications to ensure timely approvals.
• Daily check workflow performance and modify rules.

Conclusion

Invoice approvals are managed through QuickBooks approval workflows. However, the capabilities and customization are minimal. Businesses requiring complete automation must add customized approval software to simplify their processes.

In this guide, complete information about the invoice approval process in QuickBooks has been shared. Still, if there is any doubt or query, feel free to reach out to us.

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