Who Should Approve an Invoice?

Who approves invoices?

The person who approves an invoice is usually someone with enough knowledge and authority to confirm that the charges are correct and the purchase or work was authorised.

In a small business, this could simply be the owner. In a larger company, an invoice may need to pass through a manager, purchasing team, finance department, or accounts payable process before payment can be made.

There is no single invoice approver that works for every organisation. Businesses usually decide who can approve invoices based on their internal responsibilities and spending controls.

What does an invoice approver do?

An invoice approver checks whether an invoice should be accepted for payment. This normally involves comparing the invoice with the goods, services, project, or purchase that it relates to.

The approver may check the supplier, invoice amount, descriptions, quantities, rates, taxes, payment terms, purchase order details, and other supporting information.

If everything is correct, the invoice can be approved and moved towards payment. If something does not match, the invoice may need further investigation or correction.

Who can approve an invoice?

Different people may be responsible for approving invoices depending on the organisation. Common invoice approvers include:

• Business owners
• Department managers
• Project managers
• Purchasing teams
• Finance managers
• Accounts payable staff
• Directors
• Other authorised employees

Invoice approval in a small business

Invoice approval is often straightforward in a small business because fewer people are involved in purchasing and payment decisions.

A business owner may receive an invoice, check that the goods or services were provided, confirm the amount, and then arrange payment. Another employee may also check invoices if they are responsible for bookkeeping or finance.

Even with a simple process, checking invoices before paying them can help identify incorrect amounts, duplicate bills, unexpected charges, and other mistakes.

Invoice approval in larger businesses

Larger organisations often have a more structured invoice approval process because different departments may be responsible for ordering goods, receiving services, checking invoices, and making payments.

For example, a project manager may confirm that work was completed before the finance team checks the invoice details. Accounts payable may then process the approved invoice according to the company's payment schedule.

Using different stages of approval can give a business greater control over spending, although unnecessary approval steps can also slow down invoice processing.

Should a manager approve invoices?

A manager may be the appropriate person to approve an invoice when they are responsible for the department, project, or purchase connected with it.

For example, a marketing manager may be able to confirm that a freelancer completed agreed marketing work, while a construction project manager may confirm that contracted work or materials were supplied.

The manager can verify the invoice because they understand what was ordered and what the supplier was expected to provide.

What is the role of accounts payable?

Accounts payable commonly handles invoices that a business owes to suppliers and service providers. Its responsibilities can include receiving invoices, checking billing information, recording amounts due, processing approvals, and arranging payment.

Accounts payable staff may perform some invoice checks themselves, but they may not always be the person who confirms that the underlying goods or services were received.

For this reason, an invoice may first need approval from the relevant manager or department before accounts payable processes it for payment.

Should the person who ordered the work approve the invoice?

The person who ordered goods or services can be well placed to check an invoice because they understand what was originally agreed.

They may be able to confirm whether the work was completed, whether the quantities are correct, and whether the charges match the agreed price.

A business may still require additional approval from a manager or finance employee, particularly for larger purchases or invoices above a particular spending limit.

What should be checked before approving an invoice?

Before approving an invoice, the reviewer may need to check several pieces of information:

• Supplier or business details
• Customer or billing details
• Invoice number and date
• Products or services supplied
• Quantities and rates
• Agreed prices
• Purchase order number where required
• Tax information
• Discounts and additional charges
• Payment terms
• Final amount due

Who approves invoices with a purchase order?

When a purchase order is used, the invoice may be compared with the original order before it is approved.

The relevant employee or department can check whether the supplier, products, services, quantities, and prices on the invoice match what the business authorised.

If the purchase order and invoice do not match, the invoice may need to be investigated before payment is approved.

What happens if an invoice is not approved?

An invoice that has not been approved may remain on hold until the business has completed its checks.

This can happen because approval is still waiting for a manager, supporting information is missing, a purchase order does not match, or something on the invoice needs to be corrected.

For suppliers, understanding why approval is delayed can help resolve the problem before the invoice becomes overdue.

Can an invoice approver reject an invoice?

An invoice approver may reject or return an invoice when the information does not match the purchase, agreement, or work completed.

For example, an invoice might contain an incorrect amount, missing purchase order number, duplicate charge, incorrect customer information, or services that cannot yet be confirmed.

A rejected invoice may simply need to be corrected and submitted again rather than meaning that the customer will never pay it.

Can more than one person approve an invoice?

Yes. Some businesses require more than one approval, particularly for expensive purchases or invoices involving several departments.

An employee might first confirm that the goods or services were received, followed by approval from a department manager. The finance or accounts payable team can then complete the remaining checks and process payment.

Businesses can also use different approval levels so that larger invoice amounts require approval from someone with greater spending authority.

How suppliers can make invoice approval easier

Suppliers cannot control a customer's internal approval process, but they can make their invoices easier to check.

Clear descriptions, accurate totals, correct customer information, purchase order references, payment terms, and relevant supporting documents can help the person approving an invoice understand exactly what is being billed.

It is also useful to ask customers where invoices should be sent. Sending an invoice directly to the correct billing contact or accounts department can prevent unnecessary delays.

Create invoices that are easy to review

A professional invoice should make important billing information easy for the customer and invoice approver to understand.

InvoiceAtlas lets you create invoices with customer details, invoice numbers, item descriptions, quantities, rates, taxes, discounts, payment terms, notes, and final totals.

Once your invoice is complete, you can download it as a PDF and send it to the appropriate customer contact for approval and payment.