Speed Up Invoice Approvals with Accounts Payable Workflows
- Irvine Bookkeeping
- Apr 7
- 5 min read
Invoice Approvals—which are possibly taking a lot of your time and patience. You know what I'm talking about: bills keep coming in and approvals take a long time, and then you're either late paying vendors or trying to keep your cash flow steady. It's hard to keep track of all the things you need to do when you have bills sitting on your desk. How to fix it? Streamlined the processes for paying bills. These aren’t just buzzwords—they’re your ticket to faster approvals, happier vendors, and a saner workday. We'll talk about how to use accounts payable processes to speed up the approval of invoices, answer your questions, and give you tips you can use right away.
Why Slow Invoice Approvals Are Dragging You Down
Picture this: you get a payment in your email. You, your boss, and maybe even the finance guy all need to give it the thumbs up. As the days turn into weeks, sellers start to push you, and your cash flow starts to drop. Not only are slow invoice reviews annoying, they cost you time, money, and relationships. A good accounts payable method changes that, cutting down on delays and keeping your business running smoothly.
Why does it matter? Faster decisions mean payments are made on time, terms with vendors are better, and the financial picture is clearer. It's all about running things more smoothly, which is something everyone wants.
How to Speed Up Invoice Approvals with Accounts Payable Workflows
step-by-step instructions on how to use accounts payable processes to speed up the approval of your invoices. These are made for people like us who are busy running a business.
1. Map Out Your Approval Chain
First, make sure everyone knows what is okay. Two people for big bills and one person for small ones? Not getting confused, clear roles.
Example: A $200 supply bill goes to you; a $2,000 contract hits the CFO too.
Tip: Write it down—keep a simple chart handy.
2. Go Digital with Accounting Software
Bills on paper are so last century. Using accounting software like QuickBooks or Xero to send invoices online cuts down on the time it takes for approval.
Question: “Does software really help?” Yep—studies show automation can cut processing time by 30% (Source: APQC, 2023).
Tip: Set up email alerts for pending approvals.
3. Set Strict Deadlines
Set a due date for each approver, like 48 hours. Not anymore "Afterwards I will do it."
Example: Invoice hits Monday, approved by Wednesday, paid by Friday.
Tip: Use calendar reminders to enforce it.
4. Centralize Invoice Intake
All bills can be sent to one email box or portal, so they don't get lost.
Tip: Try a dedicated email like ap@yourbusiness.com—simple and effective.
5. Automate Routine Approvals
Bills that aren't very expensive don't need a committee. Your accounting program can be set up to automatically approve them.
Example: Anything under $500 gets a green light instantly.
Tip: Review auto-approvals monthly to stay in control.
Common Mistakes That Slow Invoice Approvals
We’ve all messed this up—here’s what to dodge:
No Clear Process: If nobody knows who’s approving, delays pile up. Fix it with a workflow map.
Manual Everything: Paper trails and email chains are slow. Go digital.
Ignoring Bottlenecks: One slow approver can stall it all. Spot and fix them.
Actionable Advice: Audit your accounts payable process monthly. Where’s the holdup? Attack it.
How Bookkeeping Ties Into Invoice Approvals
How to keep the books comes in very handy here. Good accounting is more than just keeping records; it's also about making things easier. Follow each step of the invoice approval process: received, cleared, and paid. This also has to do with budgeting, making sure that your money is always correct and that your cash flow doesn't stop.
“Do I need a pro for this?” Not yet—start with a spreadsheet if you’re small. But accounting software scales with you.
Log approval dates to spot trends—data’s your friend.
Real-Life Win: From Chaos to Clockwork
Meet Tom, who runs a mid-size retail shop. His invoice approvals were a mess—bills sat for weeks, vendors grumbled, and cash flow suffered. He revamped his accounts payable workflow:
Mapped a two-step approval chain (him, then his manager).
Switched to accounting software for digital routing.
Set 48-hour approval deadlines.
Result? Approvals went from 10 days to 3, vendors stopped chasing, and Tom saved hours weekly. Smart workflows worked wonders.
Question: “Can this fit my business?” Absolutely—scale it to your size and watch it click.
Bookkeeping Tips to Supercharge Invoice Approvals
Let's do something useful. This is how you can use accounts payable processes as a secret weapon:
Standardize Forms: Use the same invoice form for everything. This will make things go faster.
Get your team ready: Clarity cuts down on delays, so show approvers the steps.
Use Track Metrics: Every month, check the approval time and try to cut it down by one or two days.
Approvals in Groups: Pay attention to bills once a week instead of every day.
Tip: Start with one tweak—like digital routing—and build from there. Small steps, big wins.
Why Faster Invoice Approvals Boost Your Bottom Line
Quickly approving invoices aren't just convenient; they also save you money. If you pay on time (or early), the seller might give you a discount, like 2% off. Don't pay late fees that cut into your return. Maintain a steady cash flow for growth or paying employees. It's a good way to improve working efficiency.
Example: A $1,000 invoice with a 2% discount saves $20 if paid early—multiply that by 10 invoices monthly, and you’re up $200.
Tip: Calculate savings vs. approval time—numbers don’t lie.
DIY Workflows vs. Expert Help
It's easy for you to handle this yourself. Use a notebook or a spreadsheet to make a list of invoices, give approvers, and set due dates. When you add accounting software to a dashboard, you get a nice look, real-time tracking, and fewer problems. It makes you feel good when your system makes it easy to approve invoices.
But let's face it: running a business is like running a race. It can be hard to keep track of all the accounts payment tasks. Outsourcing can help. We can help with that at Irvine Bookkeeping. With custom workflows and top-notch tools, we help small and medium-sized businesses like yours get invoices approved faster. We make sure everything is correct, save you time, and keep your cash flow going strong, so you can focus on building instead of approving.
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