How to Enable an Approval Workflow in QuickBooks Online?

The Approval Workflow process in QuickBooks is considered a key feature. It assists businesses in monitoring expenses. Additionally, it enables them to manage budgets with precision.

A systematic accounts payable procedure begins with an organized approval workflow. QuickBooks Online Advanced offers automation with certain rules and norms. It ensures that the relevant approvers review the invoices and bills before payment.

This guide explains the approval workflow function in QuickBooks. It elaborates on the configuration procedure in detail. Additionally, it demonstrates how the approval workflow can be enhanced through the use of third-party automation.

Does QuickBooks Online Have an Approval Workflow?

No. An approval workflow does not feature in QuickBooks Online. This feature is available in QuickBooks Online Advanced only. No other version of QuickBooks has this invoice approval workflow feature.

In QuickBooks Online, users can assign an approval workflow for every vendor. This function is enabled using the “Workflow” feature.

Which QuickBooks version includes Built-In Invoice Approval Workflows?

Only QuickBooks Online Advanced comes with integrated invoice approval processes. This version has built-in standard workflow formats. Such features enable users to design custom workflows. Thanks to such workflows, invoices and bills are directed for approval. The approval workflow begins when the amount, vendor name, or transaction type conditions are met.

After the setup is complete, QuickBooks notifies the approvers to check a bill. Usually, approvers are allocated by role or team members with the right permissions. QuickBooks automatically authorizes the bill if the creator is the approver.

Users can direct notifications to deliver to chosen emails. To notify the stakeholders, BCC and CC options can be used.

How to set up the pre-built Bill approval workflow template?

Here are the steps to set up the pre-built bill approval workflow template:

1. Sign in to QuickBooks Online Advanced as Admin.
2. Go to the Workflows section.
3. Select “Templates”.
4. Choose the Set up bill approval tile to start the setup approach.
5. As an alternative approach, you can create a custom workflow with the help of the “+Custom workflow” button.
6. For quick identification, add a vivid name to the workflow.
7. State the conditions that can activate the bill approval workflow, like:
   • Certain vendors need approval.
   • The bill is more than a certain number.
   • Bills related to specific accounts.

How to Set Up and Access Bill Approval Workflow in QuickBooks Online?

To access the bill approval process, QuickBooks Online Advanced is required. Setting up and handling workflow can be done only by Admins. Once active, workflow runs automatically when the specific transaction conditions are addressed.

 Here is a step-by-step guide to set up the bill approval workflow:

1.    Use the Workflow Feature

1. Sign in to the QuickBooks Online Advanced account.
2. On the left navigation section, choose the option “Workflows”.
3. In the “Templates” tab, prepare a personalized workflow or select a predefined template.

2.    Configure the Approval Workflow

1. Design a custom workflow or configure a template.
2. Allocate a proper and detailed name.
3. Define the conditions to activate the approval.
4. Define how QuickBooks must respond when conditions are fulfilled.
5. Choose and allocate users or roles to manage approvals.
6. Save and activate the workflow to trigger automation.

How to Enable Invoice Approval Workflow for teams in QuickBooks Online Advanced?

Here are the steps to activate the invoice approval workflow for your team in QuickBooks Online Advanced:

1. Choose the Invoice Approval Template

1. Head to the “Invoice Approval” option in the Templates segment.
2. Press the “Create” button.
3. Allocate a custom name to the workflow.
4. As an alternative, use the pre-assigned name.
5. Changing the workflow name is useful. It is helpful in case several approval workflows with conditions are required.

2. State Trigger Scenarios

1. Define the conditions that will start the approval workflow.
2. Select criteria like customer, invoice amount, location, etc. For instance, for the invoice amount, state the threshold value too.

3. Configure a Response for Approval Notification.

1. Determine what happens when conditions are fulfilled.
2. Choose the team member to approve the sales invoice.
3. Deliver it to the customer.
4. State the response for conditions when the invoice is not accepted within a given time.
5. A standard notification message is sent, which can be modified.
6. Press the “Save and Enable” button to initiate the workflow.
7. Admin -created invoices will be approved automatically.
8. Prior to sending to customers, team members should send them for approval.

4. Check and Authorize Invoices

1. To check the awaiting approvals, approvers need to head to the “tasks” tab.
2. From the list of tasks, approvers can accept or reject invoices.
3. Additionally, approvers can accept the invoice from the invoice screen.

How to Overcome QuickBooks Approval Limitations?

There are certain limitations in the QuickBooks approval procedure. These shortcomings can be dealt with by third-party approval software. Approval software boosts efficiency and improves approval functions.

Here are the vital points to search for in an approval software:

• Change workflows to address custom business processes.
• Allow several approvers in one workflow.
• Monitor and authorize all expenses along with invoices.
• The mobile app allows real-time approvals.

Note: Manual effort and approval delays are reduced significantly with the right approval software.

Best Practices for Invoice Approval Workflows

Approval workflows should make decisions simple and easy. They must not trigger delays. Here is the list of the best practices to create a successful approval workflow:

• Define Key Dollar Thresholds: Reject approvals for routine minor bills. This avoids workflow delays.
• Schedule automated alerts: Allow approvers to get automated notifications. This ensures approvals are not missed.
• Resolve Crucial Challenges: Concentrate on approvals that avoid duplicate bills, bill overpayments, and unverified vendors.
• Allocate Specific approvers: Make sure right permissions are given to approvers. Explain their duties properly.
• Track Workflow performance: Check workflow on a daily basis. Classify the approval blockages and modify workflow settings as required.

Final Words

In this guide, complete information on the topic of approval workflow in QuickBooks has been shared. Still, if there is any confusion or query, feel free to reach out to our team of QuickBooks professionals.