Purchase approval and expense authorisation
Simple approval rules reduce surprises and make responsibility clearer.
A practical purchase approval routine gives UK small businesses more control without adding unnecessary admin. The aim is simply to make it clear who can commit spend, who checks it and when the paperwork needs to be ready.
What should be in place?
- approval levels and spend limits are defined
- approval happens before or just after the spend
- evidence reaches bookkeeping through the same channel each time
- exceptions are noted immediately
Where do mistakes happen?
| Area | Typical problem |
|---|---|
| Ownership | no one can say who approved the spend |
| Evidence | receipts or support arrive late or not at all |
| Consistency | similar costs are recorded in different ways |
A practical routine
- Link the approval flow to Supplier statement reconciliation so supplier activity and approvals are reviewed together.
- Use Record keeping tips as the minimum standard before anything is posted.
- Bring expense claims and one-off purchases into the same routine instead of handling them separately.
- Review exceptions during Balance sheet review before month-end , so they do not linger between periods.
In summary
Approval works best when it is light but consistent. The point is better control and cleaner evidence, not a long chain of sign-offs.