Why You Should Automate Your Approval Policy

Why You Should Automate Your Approval Policy

In every organization, there comes a time when you must introduce approval policies for spending. These policies ensure that when you empower employees to make purchases, they spend responsibly and align with the company’s strategic objectives. Just as importantly, they help maintain accountability by requiring the appropriate permissions before a purchase can be made. However, creating and enforcing these policies can sometimes slow down your operations if not managed effectively. This is where automation with Qashio becomes a game-changer.

What is an Approval Policy?

An approval policy is a formal set of rules outlining who must approve a purchase before any money is spent. These policies protect budgets, prevent unauthorized expenses, and ensure the right individuals sign off on payments. Typically, an approval policy covers:

1. When an Approval is Required
   This is often tied to spending thresholds. For instance, any purchase above a specific amount—say AED 200—may require a manager’s sign-off.
   
   
2. Who Gives the Approval
   Approval might come from a direct manager, a finance director, or even a dedicated procurement team, depending on the purchase’s value or nature.
   
   
3. Conditions That Must Be Met
   Before a purchase is approved, certain requirements might be required, such as confirming the available budget, verifying the legitimacy of the expense, or ensuring compliance with internal guidelines.
   
   

When approval policies are communicated clearly, employees follow a uniform process. This reduces errors, prevents overspending, and secures accountability. In short, approval policies offer a structured, documented way to keep spending within limits.

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Bottlenecks with Traditional Approval Policies

While approval policies are essential for safeguarding an organization’s financial health, they can create bottlenecks in day-to-day operations, especially when they involve multiple layers of authorization:

1. Time Delays
   When numerous managers or departments must weigh in on a single purchase, the timeline for decision-making can stretch. Employees may wait days—or even weeks—for approvals. This delay can be costly in fast-moving markets, where you need rapid decisions to seize business opportunities.
   
   
2. Excessive Paperwork
   Traditional approval processes often rely on physical signatures, email threads, or spreadsheets. If an employee needs to seek multiple approvals, they might chase different managers by email or walk from one office to another. This manual back-and-forth increases the risk of losing track of approvals and creates unnecessary administrative work.
   
   
3. Limited Visibility
   In a disconnected process, it’s difficult to see exactly where a request stands at any given moment. An employee might spend hours trying to figure out who currently holds the approval request or why it is delayed. This lack of transparency impacts productivity and causes frustration across teams.
   
   
4. Reduced Agility
   A slow and outdated approval system can slow down the entire company. Managers get bogged down in routine requests that offer little strategic value, while finance teams spend more time on confirmations and less time on strategic planning or analysis.
   
   

These bottlenecks can slow organizational growth, even though they originate from a well-intentioned desire to maintain control and prevent unauthorized spending. The challenge lies in balancing robust oversight with operational efficiency.

How Automation Can Help

Automation addresses many of the flaws associated with manual approval processes. By leveraging technology, organizations can create systems that instantly route requests to the right individuals and track approvals at each stage. Here is why automation is so effective:

1. Reduced Manual Work
   Instead of emailing multiple people or circulating paper forms, employees submit a request through a centralized platform. Approvers receive an automatic notification, allowing them to grant or deny approval with just a few clicks.
   
   
2. Faster Decisions
   Immediate notifications and streamlined workflows mean less waiting. Managers can review requests on their mobile devices or desktops in real time, leading to quicker turnarounds.
   
   
3. Scalability
   Automated workflows can handle complex, multi-layered approvals without burdening managers. You can easily scale processes as your company grows or your approval rules change.
   
   
4. Enhanced Visibility
   A transparent audit trail allows everyone to see which requests are approved or pending. This centralized tracking improves accountability and ensures no request falls through the cracks.
   
   
5. Empowered Employees
   When employees know the company’s policies and have a straightforward path to follow, they are empowered to act more decisively. They remain accountable for following the set rules, but do not face unnecessary delays when making routine or urgent purchases.
   
   

How Qashio Automates Approval Policies

Qashio is designed to remove the headaches of manual approval processes. It lets you define policies, create custom workflows, and keep track of every transaction from one centralized solution. Here’s how:

1. Set Your Rules
   In Qashio, you can establish rules that align with your company’s spending policies. For example, any expense above AED 500 might need a manager’s approval, while anything above AED 1,000 could require executive-level sign-off.
   
   
2. Custom Workflows
   Qashio offers flexible workflows that adapt to different types of expenses, from everyday office supplies to large-scale vendor payments. You decide the path a purchase request follows before being finalized.
   
   
3. Instant Notifications
   Once an employee submits a purchase request, Qashio automatically alerts the relevant people. This eliminates time wasted in waiting for emails or physically tracking someone down to sign a form.
   
   
4. Clear Approval Records
   Every step of the approval journey is documented, ensuring full visibility. You can quickly audit past decisions, check who approved a particular request, and identify any hold-ups in real time.
   
   
5. Integration with Existing Tools
   Qashio smoothly integrates with your existing systems. This unified environment reduces complexity and makes adoption easier.
   
   

Applying Qashio’s Approval Automation

Qashio’s flexibility means you can set approval policies for:

• Card Funding
• Card Creation
• Pool Account Funds
• Invoices
• Post-Transaction Reviews
• Reimbursements
• Qashio Points Transfers

By assigning tiers (for instance, small purchases under AED 200 require no approval, while AED 200– 500 needs a manager’s authorization, and anything above AED 500 involves finance), you empower employees to continue working at speed while still following company policies.

Once a policy is set in Qashio, the system can automate approvals or rejections, ensuring no one wastes time chasing signatures or verifying paperwork. Managers stay informed without being overloaded by minor requests, and employees gain the freedom to make timely purchases within clearly defined limits.

Why Is This Useful?

1. Less Admin Work for Managers
   With Qashio, managers spend fewer hours on administrative tasks and focus on higher-level responsibilities. This optimization makes better use of their expertise.
   
   
2. Employee Empowerment
   Employees can spend confidently, knowing that as long as they operate within specified limits, their expenses will flow smoothly through the system.
   
   
3. Faster Organizational Speed
   By removing long approval chains, you ensure that day-to-day operations and strategic decisions continue without unnecessary slowdowns. When opportunities arise, your team can act immediately.
   
   

Developing and implementing an effective approval policy is a crucial step for organizations that want to monitor and control spending without sacrificing efficiency. With Qashio, you gain the ability to set robust guidelines, automate multi-layered approvals, and maintain full visibility over company-wide expenditures.

If you have questions about designing or refining your approval policies, reach out to one of our experts. We are here to help you create a streamlined, automated approval process that will support your organization’s growth and financial well-being.

By automating your approval processes with Qashio, you strike the perfect balance between rigorous oversight and efficient operations. Avoid bottlenecks, ensure compliance, and keep your business moving forward—faster and with greater confidence.

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