Spend approvals are far from mere formalities, they are your first line of defence against unjustified expenditure and a pillar of good financial control. By implementing a robust approval process, you empower approvers to scrutinise spend meticulously, ensuring that all stakeholders are informed and in agreement with the financial commitments being made. It's about ensuring that every pound spent is justified, necessary, and in alignment with your company's strategic goals.
Where Approvals Systems Fail
Despite their importance, many organisations grapple with approval systems that are more a hindrance than a help. Let's explore these pitfalls:
1. Slow Approvals and Bottlenecks
An approvals system that isn't user-friendly can significantly delay decision-making. When busy approvers have to log into and navigate yet another platform, it can discourage timely approvals, causing bottlenecks that slow down the entire procurement process.
2. Lack of Customisation in Approval Workflows
Not all expenditures are created equal, and your approval workflows need to reflect that. It's crucial that the right individuals, with the appropriate level of authority, are involved in the approval process. For instance, minor recurring expenses should not require the CFO's sign-off.
3. Inappropriate Number of Steps in the Workflow
The complexity of the approval workflow should be proportional to the significance of the spend. Overly intricate workflows for minor expenses can be as problematic as overly simplistic ones for substantial investments.
4. Excessive Manual Intervention
While the human element in approvals is indispensable for safeguarding company spend, certain aspects of the process are better off automated. Assigning expenses to specific workflows or following up with approvers are tasks ripe for automation, freeing up valuable time for more strategic decision-making.
Creating Functional Approvals
Kloo is revolutionising the approval process, addressing these common issues head-on:
Approvals from Your Inbox
With Kloo, approvers can make informed decisions directly from their email inbox, armed with AI-generated insights on historical spend with the supplier, potential duplicate spend, and how the spend will impact budget compliance, This not only speeds up the process but also enhances the quality of decision-making.
Customisation and Flexibility
Kloo offers extensive customisation options for approval workflows, ensuring they are perfectly aligned with the nature of the spend. From conditional, threshold-based workflows to unlimited steps, Kloo makes sure that the right people are reviewing the right expenses. This can also improve the speed of approvals significantly, with senior decision-makers only being sent approval requests when actually necessary.
Seamless Automation
Kloo automates the tedious parts of the approval process, such as assigning expenses to workflows and sending reminders to approvers. This blend of automation and human oversight strikes the perfect balance, ensuring efficiency without compromising on control.
Key Takeaways
In conclusion, the effectiveness of your approvals system is non-negotiable in the finance sector. It's not just about controlling spend; it's about enabling your business to move swiftly and strategically. With Kloo, you can overcome the common pitfalls of traditional approval systems, ensuring that your financial governance is as robust as it is agile. Say goodbye to the bottlenecks and hello to a streamlined, efficient process that safeguards your bottom line while empowering your team to make swift, informed decisions.
