From chaos to control: Best practices for accounts payable approvals

Managing accounts payable (AP) is more than just paying bills on time. It’s about protecting cash flow, reducing risk, and ensuring accountability within your business. One of the most effective ways to do this is by implementing a structured approval process.

But here’s the challenge: too much oversight slows your team down, while too little leaves you exposed to fraud, errors, and cash flow surprises. The solution? A smart, balanced approval workflow.

Let’s have a look at the seven best practices for AP approvals and how QuickBooks Bill Pay makes them simple to implement.

Key accounts payable challenges businesses face

Many businesses, both small and growing or well-established, run into the same AP challenges:

Manual processes and paperwork

Too many businesses still rely on spreadsheets, paper invoices, or email threads to manage approvals. This leads to delays, lost documents, and inconsistent records.

Fraud and unauthorized payments

Without structured oversight, businesses are vulnerable to duplicate invoices, vendor fraud, or even internal misuse of funds.

Poor cash flow visibility

When approvals are slow or disorganized, payments get delayed — or worse, unexpected payments slip through. This makes it harder to forecast cash needs and maintain healthy working capital.

Bottlenecks and delays

Overly complex approval chains or lack of role clarity can grind AP to a halt, frustrating vendors and hurting supplier relationships.

Compliance and audit risks

Businesses often struggle to maintain a clear audit trail. Missing documentation or inconsistent approvals make it difficult to prove compliance with internal policies or external regulations.

Scaling with growth

As transaction volume increases, manual or loosely defined processes quickly break down. What worked for a five-person team doesn’t scale for a growing organization.

These challenges highlight why structured, technology-enabled approval workflows are essential—not just for control, but for keeping AP efficient and strategic.

Why accounts payable approvals matter

Approvals serve as a financial safeguard. They ensure that payments are authorized by the right people, at the right time, and for the right reasons. Whether you’re running a growing business or managing clients’ accounts, an approval workflow:

• Prevents duplicate or unauthorized payments
• Protects against fraud
• Keeps cash flow under control
• Creates a clear audit trail for compliance

7 best practices for accounts payable approvals

1. Define clear approval policies

Every business should have written rules for who approves payments, at what thresholds, and under what conditions. For example, a team lead might approve payments under $50,000 while the owner reviews anything above that.

2. Keep workflows simple

Approvals should add value, not red tape. Avoid creating unnecessary steps or bottlenecks that delay vendor payments and frustrate your team.

3. Use technology, not paper

Paper approvals or manual email chains are prone to mistakes. Modern solutions like QuickBooks Bill Pay offer built-in approval workflows that are automated, transparent, and auditable.

4. Segregation of duties

The person who requests a payment should not be the same person who approves it. Segregation of duties creates checks and balances, reducing the chance of errors or fraud slipping through.

5. Customize for payment size

Not every transaction needs the same level of oversight. Reserve higher scrutiny for large or unusual payments while letting routine, low-value bills move faster.

6. Document and audit regularly

Even with an approval process, it’s important to periodically review payment activity. Spot-check for patterns or anomalies that might indicate risk.

7. Integrate with your accounting system

Approvals are most effective when tied directly into your financial workflows. With QuickBooks Bill Pay, approvals sync seamlessly with QuickBooks Online, helping keep your books accurate while streamlining your accounts payable process.

How QuickBooks Bill Pay simplifies approvals

QuickBooks Bill Pay makes it easy to implement all these best practices:

• Automated approval workflows that scale with your business
• Business owner oversight without slowing down the team
• Customizable rules so you decide who approves what
• Full visibility into cash outflow before payments are released

With approvals in place, you’ll protect your business while keeping operations running smoothly.

QuickBooks Bill Pay and best practices go hand-in-hand

Accounts payable approvals aren’t just about control—they’re about building trust, efficiency, and financial security. By following these best practices and leveraging QuickBooks Bill Pay, you can protect your cash while empowering your team to work confidently.