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Best Practices for Expense Report Approvals

Learn how to set clear rules, automate approvals and keep employees reimbursed faster.

ExpensePoint
Aug 22, 2025
Finance

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expense report approvals

Approving expense reports may seem straightforward, but without a structured process, it can quickly become a bottleneck. Missing receipts, vague expense categories, or unclear approval responsibilities often lead to delays, frustration and compliance risks. Establishing clear best practices ensures that expense approvals move smoothly, employees know what’s expected  and finance teams maintain control without creating unnecessary red tape. 

1. Define Clear Approval Workflows


One of the most common issues with expense approvals is confusion about who approves what.  Clear workflows reduce delays and remove ambiguity. 
 
Best-in-class workflows are: 
  • Role-based: Managers approve team expenses, department heads approve larger amounts and finance oversees compliance. 
  • Automated: Expense management software like ExpensePoint should automatically route reports to the correct approver based on rules (amount, category, department). 
  • Transparent: Employees should always know where their report stands and who is responsible for the next step. 

2. Set Spend Limits and Escalation Rules

Not every expense requires the same level of review. To prevent bottlenecks, organizations should set: 

  • Threshold approvals (e.g., anything under $100 auto-approves with receipt; $1,000+ requires manager and finance). 
  • Category-specific rules (e.g., travel over $500 requires secondary approval). 
  • Escalation paths for overdue approvals so that reports don’t get stuck indefinitely. 

3. Enforce Documentation Standards

Strong approval processes depend on complete documentation. Receipt capture integrations and mobile uploads make this seamless for employees. 

Set clear rules for: 

  • Receipts: Require digital copies for all expenses above a set amount. 
  • Expense categorization: Standardize categories (meals, lodging, mileage) for consistency. 
  • Business purpose: Short explanations clarify why the expense was necessary. 

4. Integrate with Accounting and HR Systems

Approvals are most efficient when tied directly into the systems finance already uses, such as QuickBooks, NetSuite, or HR platforms. This ensures expense approval isn’t an isolated task but part of a connected financial workflow. 

Integrations allow: 

  • Automatic syncing of approved expenses into the general ledger. 
  • Alignment of approval hierarchies with HR records. 
  • Real-time visibility into department budgets and spend. 

5. Prioritize Timeliness

Delayed approvals hurt employees who rely on reimbursements and slow down financial reporting. Fast, predictable turnaround builds trust and avoids frustration. 

Best practices include: 

  • Setting deadlines (e.g., managers must review within 5 business days). 
  • Automated reminders for pending approvals. 
  • Mobile approval options so managers can review on the go. 

6. Train and Communicate Expectations

Even the best approval system fails without adoption. Clarity reduces resistance and minimizes back-and-forth corrections.  Read more about Expense Report Policy Best Practices (& How to Avoid Common Pitfalls).

To encourage compliance: 

  • Provide short training sessions for new employees. 
  • Share quick-reference guides for approvers and employees. 
  • Remind staff regularly about deadlines and documentation standards. 

7. Monitor and Improve

Finally, treat expense approvals as a living process. Review these insights regularly and adjust policies or workflows to improve efficiency. 

Track key metrics such as: 

  • Average approval times 
  • Number of reports sent back for corrections 
  • Categories with frequent violations 

Expense report approvals should balance control with efficiency. With the right workflows, documentation standards, and integrations, companies can keep finance teams confident, employees reimbursed quickly and compliance airtight. 

A modern, well-structured approval process doesn’t just manage spend; it creates smoother workflows and happier teams. 

FAQ 

What is the purpose of an expense report approval process?

The approval process ensures that employee expenses are legitimate, properly documented, aligned with company policy and coded correctly for accounting purposes. It helps control costs, prevent fraud and maintain compliance. 

Who should approve expense reports? 

Typically, the direct manager reviews for legitimacy, while finance or accounting ensures compliance and proper coding. Larger expenses may require department head or executive approval, depending on thresholds set in the policy. 

How can companies speed up expense report approvals?

Automation is the key. Using expense management software that routes approvals, sends reminders and integrates with accounting platforms can reduce delays. Clear policies and mobile-friendly approvals also help managers approve on the go. 

What documentation should be required for expense report approval?

Employees should submit receipts (digital or scanned), categorize expenses correctly and include a brief business purpose for each expense. This documentation supports compliance and audit readiness. 

What are common problems in expense report approvals?

The most common issues include missing receipts, unclear expense categories, delayed approvals by managers and inconsistent policy enforcement. These can be avoided with automation, clear workflows and regular training. 

Request your ExpensePoint demo today and discover how easy and efficient expense management can truly be. 

 

 

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