The $20,000 Approval
What may seem like a “small” approval can have big consequences.
Most costly business mistakes don't begin with a six-figure decision. They start with a routine approval.
A bill is paid without supporting documentation. A contract is signed without legal review. A purchase is made without confirming it fits the budget. Individually, these decisions seem insignificant, but together, they can cost a business thousands of dollars.
Strong approval processes aren't about creating bureaucracy; they're about protecting the business.
The right approval workflow ensures that purchases receive the appropriate review, required documentation is collected, and the expense aligns with company policies before money leaves the bank. It also creates a clear audit trail that protects both the organization and the employees responsible for approving transactions.
A simple question can prevent an expensive mistake: "Does this expense require additional review before payment?"
If the answer is yes, the transaction should follow a defined process, and not be rushed through for convenience.
One of the most effective internal controls is the segregation of duties. As a general rule, every bill should pass through at least two or three individuals – the requester, the approver, and Accounting – before payment is issued. This process helps verify accuracy, ensure proper authorization, and protect the organization from errors and fraud.
The best-run organizations don't rely on individuals to remember every rule. They build systems that make the right decision the easiest decision.
Final Thoughts
A $20,000 mistake rarely happens because someone intended to make one. It usually happens because the approval process wasn't designed to catch it.
Good financial controls don't slow a business down. They help it grow with confidence.
About inQub-O
At inQub-O, we help organizations design practical approval workflows that improve accountability, strengthen financial controls, and keep businesses audit-ready without creating unnecessary complexity.
Next in the series: The Myth of the Paperless Office