Invoice Approval Checklist

Before you start

An approval step is a deliberate check by someone other than the person who raised an invoice — or, for supplier bills, before you pay them. It is your last line of defence against errors, unapproved charges and duplicate payments. The point is not bureaucracy; it is that a second look catches things the author cannot see, and a clear sign-off means everyone knows who confirmed the invoice was correct.

Before you set up approval, decide what it is meant to confirm and who holds the authority at each value. An approval process that everyone bypasses 'to save time' protects nothing, so keep it proportionate. This works alongside purchase-order matching, where a PO is the customer's approval to buy.

Approving an invoice you are sending out

For your own outbound invoices, the approver should confirm:

• The customer, entity and billing contact are correct
• The work billed was actually delivered and agreed
• The amounts, rates and discounts match the quote or contract
• GST is applied correctly and the totals reconcile
• The invoice has a unique number and correct terms

This is the accuracy check formalised, so that high-value invoices in particular get a second pair of eyes before they leave.

Approving a supplier invoice to pay

For bills you receive and pay, the approver should confirm:

1. The invoice matches a purchase order or agreed scope
2. The goods or services were actually received
3. The price and quantity match what was ordered
4. It is not a duplicate of an invoice already paid
5. The supplier's bank details match your verified record
6. The approval sits within the approver's authority

Duplicate bills and changed bank details are common payment frauds and errors, so these two checks earn their place every time.

Set approval levels and keep records

Make the process workable and auditable:

• Set value thresholds so small invoices are not over-controlled
• Define who can approve at each level
• Require a different person to approve than to raise or enter the invoice
• Record who approved, when, and any conditions
• Keep the approval with the invoice on file

Separating who raises an invoice from who approves it is a simple control that prevents a lot of errors and fraud.

Common mistakes

Approval breaks down in these ways:

• Rubber-stamping — approving without actually checking
• No separation — the same person raises and approves
• Duplicate paid — a supplier bill paid twice for lack of a check
• Unverified bank change — paying new account details without confirming them

A proportionate process with real separation fixes most of these. Strong approval supports faster, cleaner billing overall — see how to reduce the time it takes to get paid, and our free invoice tools help keep your outbound invoices consistent for approval.