TL;DR:
Split the job in two: one person confirms the invoice is right, a different person approves the payment.
Set amount thresholds so small invoices stay quick and large ones get more eyes.
Keep a record of who approved what and when, so any payment can be explained later.
A vendor invoice arrives by email. Someone pays it. A month later, another person asks why the amount was so high, and no one remembers who checked. A short approval process prevents both honest mistakes and fraud, and it does not need software to start. It needs three decisions: who approves, up to what amount, and where it is recorded.
When you need a formal process
As soon as more than one person can spend money, or as soon as the person paying is also the person who ordered. In very small teams one person may do everything, and then the process is a checklist you work through yourself, ideally with a second person looking at larger payments.
Decide the rules before the next invoice arrives
Who checks the invoice. Usually the person who ordered the work or goods, because they know whether it was delivered.
Who approves payment. A different person, with authority over that budget.
Thresholds. Amounts above which an extra approver is needed.
Who actually pays. Ideally not the same person who approved, so no single person controls the whole path.
Where records live. One shared place, such as a sheet and a folder of invoice files.
Separating these roles is a long-established control idea, often called segregation of duties. The goal is not to distrust people, but to make sure a mistake or a deception has to get past more than one set of eyes.
The two-step flow
Log the invoice on arrival: Add a row to the approvals sheet with the date received, vendor, invoice number, amount and due date. Save the invoice file in the shared folder.
Step one: the requester confirms: They confirm the work or goods were received, the amount matches the quote or order, and the invoice is not a duplicate. They mark it as checked with their name and date.
Step two: the approver approves payment: A different person reviews the checked invoice against the threshold rules and approves, or sends it back with a reason.
Payment and record: The payer pays only approved invoices, verifies the vendor's bank details against those on file, and records the payment date.
Worked example: a two-step approval for invoices
Say a small company uses these example thresholds, which every team should set for itself. Invoices under 500 need one approver, a manager. From 500 to 5,000 inclusive they need the manager and the finance owner. Above 5,000 they need a director as well as finance.
In the sheet, with the amount in column C, the required approval can be calculated so no one has to remember it:
=IF(C2<500, "Manager", IF(C2<=5000, "Manager + Finance", "Director + Finance"))Test the boundaries, because that is where mistakes hide. An amount of 499.99 gives Manager. 500 is not less than 500, so it falls to the second test, and since 500 ≤ 5,000 it gives Manager + Finance. 5,000 also gives Manager + Finance because the test is less than or equal. 5,000.01 gives Director + Finance.
Now a case. An invoice for 1,850.00 arrives from a printing vendor for a batch of brochures. The people and numbers are invented.
Field | Entry |
|---|---|
Received | Nov 3 |
Vendor / invoice | Print vendor / 2210 |
Amount | 1,850.00 |
Required approval | Manager + Finance |
Step 1: checked by | Ana (ordered the brochures), Nov 4: delivered, matches quote |
Step 2: approved by | Raj (manager) and Mei (finance), Nov 5 |
Paid | Nov 10, by Tom, bank details matched on file |
Nobody in that chain acted alone. Ana confirmed the goods, Raj and Mei approved the spending, and Tom paid after checking the account details. If the invoice had come in at 4,000 more than the quote, Ana's check would have caught it before anyone else needed to.
Records worth keeping
The invoice file and the order or quote it matches.
The names and dates of each check and approval.
The payment date and the amount actually paid.
The reason, if a payment was rejected or changed.
How long records must be kept depends on the rules where you operate, so check with a professional about retention. Whatever the period, store them where more than one person can find them.
Red flags to stop on
New bank details on an invoice from a vendor you already pay. Confirm by calling a number you already had on file, never one from the message.
Pressure to pay today, secrecy or skipping the process for this one.
An invoice for something no one remembers ordering.
The same invoice number or amount arriving twice.
Mistakes to avoid
Approval by a reply that says ok in a chat with no record. Log it in the sheet.
Thresholds nobody can remember. Calculate them in the sheet.
An approver who is also the requester. That is one step wearing two hats.
Splitting a large invoice into several small ones to stay under a threshold.
Doing it faster
Use the same sheet and folder every time and set a weekly slot for approvals, so invoices do not wait for someone to remember. DuckyHelper can help you read a sheet or an invoice on your screen and talk through whether the numbers agree. Approving and paying remain human decisions.
Frequently asked questions
Do tiny teams need this?
A lighter version helps. If you are the only person, use a checklist and ask someone else to look at the larger payments.
What should I do if an approver is away?
Name a backup in advance. Never let the process be skipped, because the urgent invoices are the ones most worth checking.
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