If endless email chains, chasing approvals, and lost requests sound familiar, you're not alone!  

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SaaS approval workflows can significantly improve organizational efficiency by simplifying processes, reducing errors, promoting transparency, and empowering employees to be more productive. This translates into faster decision-making, quicker project completion times, and ultimately, a more competitive organization.

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However traditional approval processes can be a real drag on productivity.

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There's a better way to do it.  

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This article will explore all about approval workflows, whether you're looking to improve your current approval system or implement one for the first time, this guide will provide valuable insights to help you navigate the difficulties of workflows. 

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What is an approval workflow?

An approval workflow is a step-by-step process that automates how tasks, documents, or requests like invoices or purchase orders are reviewed and approved. It routes items to the right people, ensures compliance, and speeds up decision-making for greater accuracy and accountability.

Key Components of Approval Workflows

An effective approval workflow is built on clear structure, defined responsibilities, and consistent communication. Each component plays an important role in ensuring that approvals happen quickly, accurately, and with full visibility.

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1. Roles and responsibilities

Every approval workflow starts with people. Clearly defining who does what such as the requester, reviewer, and approver helps avoid confusion and delays. Each person knows when to take action and what their level of authority is. This clarity also builds accountability and ensures that every request reaches the right person at the right time.

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2. Submission and intake

The workflow begins when someone submits a request. This could be an expense form, purchase order, project proposal, or contract. The intake process captures all the necessary details, attaches any supporting documents, and routes the request into the system for review. A well-designed intake form reduces back-and-forth and ensures that no important information is missed.

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3. Approval conditions and rules

These are the built-in rules that guide how and when approvals happen. For example, a request over a certain dollar amount might require senior management approval, while smaller purchases may be approved at the department level. Rules like these help standardize the process, minimize human error, and ensure compliance with company policies.

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4. Approvers and permissions

Each step in the workflow is assigned to specific individuals or groups who have the authority to make decisions. Permission settings determine who can view, edit, or approve particular requests. This not only secures sensitive data but also helps maintain order and control within the system.

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5. Automated notifications

Automation keeps the process moving. When a request reaches a new stage, notifications are automatically sent to the relevant people alerting them to review, approve, or provide feedback. Stakeholders also receive updates on status changes, ensuring everyone stays informed without constant manual check-ins.

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6. Status and tracking

A centralized dashboard allows all participants to see where a request stands in real time. This visibility helps teams spot bottlenecks, monitor turnaround times, and maintain a complete audit trail for compliance. Tracking tools also make it easier to report on process efficiency and identify areas for improvement.

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7. Revision and feedback

Not every request is approved on the first try. A strong workflow includes a clear path for reviewers to provide comments and request revisions. This back-and-forth ensures quality control while keeping all communication documented in one place, avoiding confusion or lost feedback.

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8. Final approval and completion

The workflow concludes when the final approver signs off on the request. Once approved, the system can automatically trigger the next steps like generating a purchase order, processing a payment, or marking a project as ready to start. This automation closes the loop and ensures a smooth handoff to execution.

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3 Types of Approval Workflows

Approval workflows can vary depending on how organizations manage reviews and decision-making. Understanding the types of approval workflows helps you choose the right structure for your business process especially in procurement, where routing accuracy and speed matter most.

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Below are the main procurement approval workflow types and how they function:

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Linear (Sequential) Workflow

In a linear approval workflow, requests move step-by-step through a defined sequence one approver after another. For example, a purchase request might go from the Manager → Director → CFO.

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This linear vs. parallel approval method works best for processes that require strict hierarchy or compliance, such as budget approvals or large purchase authorizations. Each approver must complete their review before it moves to the next level, ensuring accountability and a clear audit trail.

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Parallel Workflow

A parallel approval workflow allows multiple approvers to review the same request at the same time. For instance, Finance, Legal, and IT teams can all review a vendor contract simultaneously.

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This structure shortens approval cycles and prevents delays, making it ideal for procurement approval workflows that involve multiple departments. Parallel routing also improves collaboration and speeds up time-to-decision without compromising control.

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Conditional Workflow

A conditional approval workflow routes requests based on predefined approval routing rules. For example:

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• Requests over $10,000 are routed to the CFO.
• Requests related to SaaS or technology go to the CIO.

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Conditional workflows are dynamic and data-driven, adapting to criteria like request value, department, or category. They’re especially useful in procurement approval workflow types where flexibility is key ensuring the right stakeholders are involved only when necessary.

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How to create an approval workflow

Creating an approval workflow involves designing a process for requesting and receiving approvals on documents, decisions, or actions. 

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Here's a general guideline to get you started:

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Define the trigger

Identify what initiates the workflow. This could be submitting a document, requesting time off, making a purchase, launching a new project, or any other action requiring approval. For example, in an HR context, the trigger might be an employee submitting a leave request.

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Choose approval type

Decide how approvals will occur. Will it be sequential (one by one) or parallel (all at once)?

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• Sequential: Approvers review and decide in a designated order. This is suitable for complex approvals or following a hierarchy.
• Parallel: Approvers review and decide independently. This is ideal for simple approvals or when speed is crucial.

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Set up approvers

 Determine who needs to approve and in what order (for sequential workflows). You can choose by role, department, or specific individuals.

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Design approval process

Craft a clear and informative request form outlining details for approvers and establish deadlines or time limits for approvals to prevent delays.

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Automate actions (Optional but most efficient option)

Simplify your SaaS approval process with workflow management tools, like Slack for team collaboration and communication which can also be used for procurement workflows.

PRO TIP 💡You can now Integrate Slack with Spendflo (your SaaS Buying Platform) and streamline vendor management, procurement, and all related processes in one centralized platform by automating sending notifications, following up with reminders, and keeping project statuses up-to-date, freeing you up for more strategic work.

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Book A Demo with Spendflo Now!

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Implement and test

Put your workflow into action and test it thoroughly to ensure smooth operation and identify any potential bottlenecks.

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4 Steps To Successful Approval Workflows

A SaaS approval process is a structured workflow designed to evaluate, authorize, and manage the adoption of cloud-based software solutions within an organization. 

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This process is important for maintaining security, ensuring compatibility with existing systems, and controlling costs associated with software subscriptions.

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Key steps in a typical SaaS approval process include:

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Step 1: Request initiation 

The initial step involves submitting a formal request and conducting a preliminary assessment. Employees or departments clearly outline the software's purpose, expected benefits, and potential impact on existing workflows.

Before submitting, they ask themselves crucial questions like: 

• Does this address a specific pain point? 
• How will it benefit the company? 
• Are there existing tools that could achieve similar results? 

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Additionally, they identify key stakeholders who might be impacted, potential integrations with existing systems, and a budget range to provide initial financial context.

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Step 2: Initial screening 

IT or a designated team reviews the request to ensure it doesn't duplicate existing tools and aligns with company needs. 

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Once submitted, a cross-functional team of IT, security, and legal collaboratively evaluate the request. They ensure it doesn't duplicate existing tools and aligns with company needs. 

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Each team member focuses on their area of expertise:

• IT assesses integration feasibility
• Security evaluates the provider's security measures, and 
• Legal reviews the service agreement for data ownership, privacy, and liability. 

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They utilize pre-defined criteria including security measures, data protection compliance, system integration, cost comparison with alternatives, and legal considerations to ensure a comprehensive evaluation.

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Things to consider: Does this tool already exist within the company? How does this align with our strategic goals?

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Step 3: Security and compliance assessment 

Following approval, the implementation process begins. The cybersecurity team evaluates the SaaS provider's security measures, data protection policies, and compliance certifications. 

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The IT team, working with relevant departments like Security and Training, creates a comprehensive rollout plan. 

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This plan focuses on three key areas: 

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• User training tailored to the specific software functionalities, 
• Data migration strategies to ensure minimal disruption and data integrity, and 
• Ongoing support procedures to address user queries and troubleshoot potential issues.

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Questions to ask: Does the provider comply with industry standards? How secure is the data with this provider?

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Step 4: Integration and cost analysis 

IT assesses how the new software will integrate with existing systems and data flows, while the finance team reviews the pricing model, compares it with alternatives, and ensures it fits within budget constraints. Based on these findings, the team can make necessary adjustments to ensure the chosen SaaS continues to meet the company's needs.

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Things to consider: How will this software integrate with our current systems? Is the cost justified by the benefits?

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Based on the assessments, a senior executive or committee makes the final decision. If approved, IT creates a rollout plan, including user training and data migration strategies. 

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Questions to ask: What is the timeline for implementation? What training will be required for users?

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Benefits Of Approval Workflows

Effective approval processes offer a range of advantages for organizations, including:

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Increased efficiency and speed

By establishing clear workflows, you eliminate confusion about who does what and when. Tasks are routed to the right people with the necessary skills, minimizing delays and bottlenecks.  Furthermore, automation can be implemented for repetitive tasks like approvals, significantly speeding up the entire process. 

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This translates to faster turnaround times, quicker decision-making, and ultimately, a more productive workforce.

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Improved control and compliance

Defined workflows ensure that everyone adheres to established protocols, mitigating risks and fostering financial accountability.  Every step in the process is documented, providing a clear audit trail for compliance purposes. 

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This reduces the chance of errors and ensures that your organization operates within legal and ethical boundaries.

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Improved decision-making and transparency

Involving relevant stakeholders in the approval process leads to more informed decisions. With input from various experts, decisions are more informed, leading to better outcomes and reduced errors.  Additionally, the system provides transparency and visibility into the entire process. 

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All parties involved can track the progress of requests, fostering trust and open communication. This collaborative approach empowers employees and leads to a culture of continuous improvement.

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Reduced costs and systematic operations

A systematic process minimizes wasted time and resources associated with manual approvals and rework. Automating repetitive tasks frees up employees to focus on higher-value activities. 

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The system can also identify bottlenecks and inefficiencies within your workflows, allowing you to optimize them for maximum cost-effectiveness. This translates to significant cost savings over time and a leaner, more efficient operation.

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Challenges of Effective Approval Processes

Implementing an effective approval process can come with several challenges. This includes overly complex workflows that create delays, difficulty in balancing thoroughness with efficiency, maintaining accountability, and adapting to remote work environments can pose significant hurdles. 

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Here are some of the most common challenges to be aware of: 

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Using a SaaS management tool like Spendflo to simplify this process, ensures a smooth transition and maximizes the return on your investment in improved workflows.

Take a cue from Airmeet, a leading virtual events platform, that achieved 3x faster procurement and optimized their SaaS spending with Spendflo.

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Best Practices for Approval Workflows

Building an effective approval workflow goes beyond automation, it’s about creating clarity, accountability, and speed at every step. The following best practices help organizations design approval workflows that improve efficiency, maintain compliance, and adapt to modern procurement needs.

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Set Approval Thresholds Based on Spend Tiers

Establishing approval thresholds ensures that every purchase gets the right level of oversight without unnecessary delays. By defining spend tier approvals, you can manage financial risk while keeping operations efficient.

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Here’s a common structure based on procurement spend thresholds:

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• Under $1,000: One-level approval (Manager)
• $1,000–$10,000: Two-level approval (Manager + Finance)
• Over $10,000: Three-level approval (Manager + Finance + Executive)

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Using automated approval rules, requests are routed automatically based on amount and category. This ensures each approval follows the correct purchase approval limits and routing logic.

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Implement Escalation Rules for Delayed Approvals

Even a well-designed workflow can stall if approvals aren’t completed on time. Setting clear approval escalation rules ensures that requests continue moving forward without manual intervention.

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A few best practices include:

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• No response within 24 hours: Escalate to the next-level manager.
• Urgent requests: Auto-escalate after 12 hours.
• Exception handling: For emergencies, bypass standard rules with a justification.

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These auto-escalation approval and exception handling workflows prevent delays and keep your procurement exception process efficient, even during peak workloads.

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Define SLAs for Approval Cycle Times

Define approval SLAs (Service Level Agreements) to set clear expectations for turnaround times. These help measure performance and improve overall workflow efficiency.

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Typical procurement SLA best practices include:

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• Standard approvals: 24-hour SLA
• High-value purchases: 48-hour SLA

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Track and report approval cycle time SLAs to identify slow steps and ensure accountability. Monitoring workflow performance SLAs helps teams continuously improve processing speed and reliability.

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Use AI for Smart Approval Routing

AI can make your workflow faster and more accurate through intelligent workflow automation. An AI approval workflow uses smart routing to automatically assign requests based on data and context.

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Here’s how it works:

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• Conditional routing: AI sends SaaS-related requests to the CIO and hardware purchases to Procurement.
• Priority-based processing: Urgent requests are flagged for faster handling.
• Auto-escalation: AI detects stalled approvals and escalates them automatically.

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By integrating AI-driven procurement, you can improve decision speed, reduce human error, and ensure every request reaches the right person at the right time.

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Enable Mobile Approvals and Real-Time Alerts

Modern procurement teams work from anywhere. With a mobile approval workflow, approvers can review and act on requests directly from Slack, email, or mobile apps without waiting to return to their desks.

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Enable real-time approval alerts so approvers receive instant notifications about new requests, pending actions, or approaching deadlines. This remote approval process keeps workflows moving and minimizes delays caused by unavailable approvers.

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Maintain a Full Audit Trail for Compliance

A complete approval audit trail is essential for transparency and compliance. It records every approval step, helping your organization meet audit and regulatory requirements like SOX and GDPR.

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Best practices for workflow compliance documentation:

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• Log every action who approved, when, and any comments.
• Store records securely for audits or compliance reviews.
• Export procurement audit logs for easy reporting and verification.

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Maintaining a reliable GDPR workflow tracking system ensures accountability, builds trust, and supports long-term compliance.

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Track These 5 Approval Workflow KPIs

To understand how well your approval system is performing, you need to measure the right metrics. Tracking approval workflow KPIs helps identify delays, evaluate efficiency, and continuously improve your procurement process. These workflow performance indicators offer valuable insights into bottlenecks, turnaround times, and user experience.

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Here are five key procurement approval metrics every organization should monitor:

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1. Average Approval Cycle Time (Target: <48 Hours)

This approval cycle time KPI measures the average time it takes for a request to move from submission to final approval. Shorter cycle times indicate a faster, more efficient process. Aim for less than 48 hours to maintain agility and prevent operational slowdowns.

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2. Percentage of Requests Approved Within SLA

This metric tracks the approval efficiency of your workflow by measuring how many requests are completed within their defined service level agreement (SLA). A high percentage means your system is performing reliably and that procurement approval metrics are aligned with business expectations.

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3. Number of Escalations

Frequent escalations can signal process bottlenecks or unclear responsibilities. Monitoring this workflow performance indicator helps identify where delays are happening whether it’s due to slow approvers, missing data, or overly strict approval thresholds.

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4. Bottleneck Rate by Approver

This approval efficiency metric highlights which stages or individuals consistently slow down the process. Analyzing bottleneck rates helps teams balance workloads, refine routing rules, and improve overall workflow speed.

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5. User Satisfaction Score

A strong approval system isn’t just about speed, it’s about experience. Collecting feedback from users and approvers provides insight into how easy the process feels. A higher user satisfaction score indicates that your procurement approval workflow is intuitive, responsive, and effective.

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How Spendflo helps manage your SaaS approval workflows with ease using Slack-first platform

When your team relies on Slack for everything, collaboration, updates, and quick decisions procurement shouldn’t slow things down. Yet, without proper integration, approval requests often vanish into long email threads, slowing deals and creating confusion.

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That’s where Spendflo’s Slack integration changes the game. One finance leader at a high-growth SaaS company used to spend hours chasing approvals across channels. After integrating Spendflo with Slack, their average approval time dropped from three days to under 24 hours, giving them full visibility into every request all without leaving their workspace.

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If your team is still juggling approvals over email or struggling to track who’s holding things up, you’re losing time and efficiency every day. Spendflo brings approvals, updates, and collaboration into one place so decisions happen faster, visibility improves, and your procurement process finally keeps up with the pace of your business.

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Don’t let approvals slow your team down. Book a free demo with Spendflo today and see how seamless procurement can be right inside Slack.

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Frequently asked questions on approval workflows

What is the manual approval process?

A manual process involves an individual personally approaching their supervisor to obtain approval for their work or to get a document signed. While this method might function for basic needs, it creates significant bottlenecks that slow down operations.

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Why is approval workflow important?

Approval workflows can increase efficiency, improve accountability, ensure compliance, and speed up decision-making processes. By creating a structured process for stakeholder review and approval, these workflows help minimize errors and promote alignment among all parties involved in the decision.

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What is the purpose of an approval?

Organizations use approval workflows to streamline the review and approval of various things, like documents, projects, and daily tasks. This helps make sure everything aligns with the company's established guidelines and objectives.

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What is the sequence of approval?

Approval workflows define the order in which approvals are required. Lower numbers signify earlier steps in the sequence. Once an approver at a specific level grants approval, the workflow automatically triggers the next step in the sequence. This ensures certain approvals happen in a specific order, maintaining control and accountability.

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