# How to set up two-step bill approval in Xero

Xero's own approval has one step. Someone submits the bill and a user with approval rights approves it. For two approvers in order, add a tool that holds a second step before the bill reaches Xero.

## Short answer

1. Set Xero user roles so some people draft and others approve.
2. The first person raises the bill and submits it for approval.
3. An approver approves it in Xero. That is one step.
4. For a second step, route the bill through a tool before it posts.
5. Test with one real bill.

## Before you start

- List who raises bills, who approves first and who approves second.
- Decide the rule for step two. It is usually an amount, a supplier or a job.
- Check who in your organisation holds a Xero role that can approve.

## The manual way in Xero

1. Go to Settings > Users. Set the role of each person. Pick a role that can draft and submit for people who raise bills. Pick a role that can approve for approvers.
2. The first person goes to Business > Bills to pay > New bill and enters the bill. They choose Submit for approval.
3. The bill moves to the Awaiting approval tab.
4. An approver opens it, checks the lines, and clicks Approve.
5. The bill moves to Awaiting payment.

That is the full native flow. It is one step.

Limits to know:

- There is one approval step. A second approver is not part of the native flow.
- There are no rules by amount or supplier.
- If the approver is away, someone else with approval rights has to do it.
- Xero Product Ideas has a request for multiple levels of approval. Treat it as a request until Xero Central says otherwise.

## The Pulsify way

Pulsify holds the bill before it reaches Xero. You set the steps, and the bill is created in Xero only after the last step.

1. Open Approvals in the sidebar. Choose the Invoices board.
2. Click Enable multi-step approvals and confirm the add-on. You start with one step that any Admin or Approver can approve.
3. Click Add step. Name step 1 and step 2. For each step, click Add approver and pick a person, a team or a role. Set the step to "Any one of them approves" or "Everyone signs".
4. Set a backup approver for step 1. Optionally add a review step before step 1.
5. Click Save board, then Try an invoice to see who would be asked at each step. It saves nothing.

When the last step is approved, Pulsify creates the bill in Xero. Every action is in the bill's activity log.

## Worked example

Example Plumbing Supplies sends a $12,000 invoice. Your rule: the site manager approves first, then finance approves anything over $5,000.

| Step | Who | Rule |
|---|---|---|
| 1. Site check | Site Managers team | Any bill |
| 2. Cost approval | Finance team | Amount of $5,000 or more |

A $900 bill stops at step 1. The $12,000 bill goes to the site manager and then to finance. A step with no matching row and no backup is skipped, so a small bill does not wait at step 2.

## Common mistakes

- Giving every user an approving role, so step one means nothing.
- Setting step 2 without a backup, then wondering why bills skip it.
- Changing the board with bills waiting. Saving restarts them at step 1. Pulsify shows how many before you save.

## Next step

[Try an invoice](https://app.pulsify.tech/sign-up) to run a bill through your own steps. The setup is in the [approval workflows guide](/guides/approval-workflows/). See the [approval workflows page](/approval-workflows/) and our post on [Xero's native approvals](/blog/xero-native-approvals-vs-third-party-workflow-tools/).

## Common questions

### Does Xero support two approvers on one bill?

Not natively. Xero's own approval is a single step. A Xero Product Ideas request for multiple levels of approval exists. Xero staff replied that a workflow is being built, so check Xero Central for the current state.

### Who can approve bills in Xero?

It depends on the user role. Some roles can draft and submit only, others can approve. Check the Xero Central user roles page for your region before you set roles.

### Do I need an add-on for two-step approval in Pulsify?

Yes. Custom approval steps use the Approval Workflows Add-on, which is billed per company. A single default rule, where any Admin or Approver approves, is on every plan. The price shows in the app before you confirm.

Source: https://www.pulsify.tech/how-to/set-up-two-step-bill-approval-in-xero/ (last checked 2026-10-19)