# How to set up a bill approval policy for a small team

Write one page: who can approve, up to what amount, who covers when they are away, and what a person may not approve. Then set your software to match. Start with two or three limits.

## Short answer

1. Name who can approve.
2. Set two or three dollar limits.
3. Split who enters, who approves and who pays.
4. Name a backup, then test with three bills.

## Before you start

You need to know:

- Who handles bills today
- Your usual bill sizes
- Which suppliers or jobs are sensitive

The [delegation of authority template generator](/free-tools/delegation-of-authority-template-generator/) builds a full matrix. The [Xero approval workflow checklist](/free-tools/xero-approval-workflow-checklist/) lists what to turn on.

## A policy you can copy

Example Plumbing Supplies has four people. Their policy fits on one page:

| Bill total including GST | Who approves |
|---|---|
| Up to $1,000 | Any office staff member other than the person who entered it |
| $1,001 to $5,000 | Operations manager |
| Over $5,000 | Owner |
| Any bill from a new supplier | Owner, for the first bill |

Backup: if the operations manager is away, the owner approves. The person who enters a bill cannot approve it. The owner reviews a list of approved bills each month.

## The manual way in Xero and MYOB

1. **Turn on approval.** In Xero turn on bill approval in your organisation settings. Only users with the right role can approve a bill. Give that role to the people in your policy.
2. **Use user roles.** Keep the list of Standard and Advisor users short. Remove people who have left.
3. **Use the Awaiting approval tab.** Go to Business > Bills to pay > Awaiting approval. Each approver checks there.
4. **Set limits by hand.** Xero does not route by dollar amount. Write the limits in the policy and check them in a regular review.
5. **In MYOB.** AccountRight does not have a built-in multi-step bill approval. Use user access and a written rule.

Limits: with the built-in tools your limits are a rule on paper. Nothing stops a person approving over their limit.

## The Pulsify way

Every Pulsify company starts with a default rule: any Admin or Approver can approve. Add steps for your limits.

1. Open Approvals. Turn on multi-step approvals.
2. Add a step. Add a row that asks a person, a role or a team. Set the conditions: amount range, supplier, GL account or job.
3. Add a backup approver on step one for bills that match no row.
4. Use a Review step if you want a bookkeeper to check coding before the approver sees the bill.
5. Add auto-approve rules for small, trusted bills if you want them to skip the queue.
6. Use Try an invoice on the board to test a sample bill before you save.
7. Approvers can bulk approve clean bills. Reject takes a reason.

## Common mistakes

- **Too many levels.** Three is plenty for a small team.
- **No backup.** Bills pile up when one person is away.
- **Letting entry and approval sit with one person.** Split the roles.

## Next step

[Try an invoice](https://app.pulsify.tech/sign-up) and build your limits on the approval board. Read the [approval workflows guide](/guides/approval-workflows/) and the [invite your team guide](/guides/invite-your-team/). The free [invoice approval workflow generator](/free-tools/invoice-approval-workflow-generator/) helps you draft one.

## Common questions

### How many approval levels does a small team need?

Usually two or three. One for routine bills, one for larger amounts and one for the owner above a high limit. More levels slow people down. Add a level only when a real bill needed one.

### Can the person who enters a bill also approve it?

It is better if they cannot. A second set of eyes catches errors and fraud. In a very small team, set a higher limit that always needs the owner instead.

### What do I do when an approver is away?

Name a backup in the policy. In Pulsify, a team can be the approver, so anyone on the team can step in. Write the backup rule down so people know it.

Source: https://www.pulsify.tech/how-to/set-up-a-bill-approval-policy-for-a-small-team/ (last checked 2026-10-19)