An expense approval workflow is a structured process companies use to manage, track, and authorize employee expense claims. Having a clear workflow helps organizations prevent overspending, ensures accountability, and simplifies record-keeping.
Typically, the expense approval workflow begins when an employee submits an expense request detailing the purchase, purpose, and supporting documentation (receipts or invoices). This request then moves to the next phase—review and verification. At this stage, managers or supervisors assess the submitted information, ensuring it aligns with company guidelines and budgets.
Once verified, the expense request proceeds to the approval or rejection step. The manager responsible approves legitimate expenses or rejects inaccuracies or policy violations. Many companies set predefined rules or thresholds to speed up and streamline smaller expense approvals.
After expense approval, the workflow typically concludes with reimbursement. Approved expenses are routed to finance or accounts payable departments, who then process the reimbursement promptly.
Implementing a well-structured expense approval workflow can significantly cut delays, reduce errors, and contribute positively to overall financial transparency. Businesses of all sizes—even smaller startups—benefit from clearly defined procedures that ensure every team member understands their role, timelines, and expectations during expense reporting.
