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The difference between approving and posting explained.

In any organizational workflow, there are multiple stages where tasks are executed and decisions are made. In the context of accounting, we often come across the terms ‘approving’ and ‘posting’. For anyone who isn’t familiar with accounting terminology, these two terms might sound interchangeable. However, there is a significant difference between these two concepts. In this blog post, we will explore the difference between approving and posting in detail.

Approval is the first step in any accounting workflow, whether it’s an invoice, purchase order, expense report, or timesheet. During the approval stage, the relevant stakeholders, such as managers, clients, or even auditors, review the transaction, verifying its accuracy, and ensuring that it complies with the organizational policies and guidelines. At this stage, they can either approve or reject the transaction, and most often, they can add comments or suggestions for improvements, which can be acted upon.

Once a transaction has been approved, it moves on to the posting stage. Posting refers to the process of recording the transaction to the accounting system, where it becomes a part of the general ledger. In simple terms, posting is akin to writing a check after getting approval from the bank. At this stage, a finance user examines the approved transaction and confirms that it is ready for recording. Once posted, the transaction is considered final, and it becomes available for financial reporting.

It’s important to note that approving and posting are not always sequential. Depending on the organization’s workflow, the two stages can overlap or occur simultaneously. For example, in a small business with a single finance person, that person might approve and post the transaction themselves. Alternatively, in a large organization with multiple approval levels, multiple people might approve the transaction at different stages before it gets posted by the finance team.

Another difference between approving and posting is that approval is often a manual process that involves human judgment and scrutiny, whereas posting can be automated once the transaction has been approved. In other words, approval requires human intervention, whereas posting can be done systematically based on a set of rules entered into a computer program. Typically, organizations use workflow automation software to manage the approval process and accounting software to automate the posting process. An integrated approval and posting workflow managed in a centralized platform is ideal.

Approving and posting are key gates in the financial operations workflow for any organization. For an agency, where the timing of client and vendor invoices and related transactions are almost always asynchronous, having a dynamic and flexible infrastructure to manage these key gates is essential.  While approval involves verifying the transaction’s accuracy and compliance with organizational policies or client/vendor agreements,, posting is all about recording the transaction to the General Ledger for financial reporting. By understanding the difference between approving and posting, organizations can improve their financial operations and ensure transparency across stakeholders. 

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Why dynamic approval is vital in running your agency

Today’s fast-paced agency is characterized by constant changes, activities, and progress. Agility is essential for agencies of all sizes to stay ahead of the competition. In the creative services industry – where agencies cater to a wide range of clients, projects have varying scopes, priorities, and tight timelines – dynamic approval is critical.

Dynamic approval workflows ensure quick decision-making

Approval workflows are integral to project management, time management, and estimating costs. Workflow processes can be complicated, and decision-making needs to be fast. Traditional approval workflows or lack thereof, can lead to over or under estimated costs, incomplete tasks, and missed deadlines. With dynamic approval, the decision-making process is sequential and streamlined, ensuring that decisions are made quickly at the right time.. Throughout the process, alerts, notifications, and reminders are sent to stakeholders to ensure that nothing falls through the cracks.

Flexibility is key

Agencies often require tailored workflows to suit the client or project at hand. A flexible approval process can be modified to cater to specific transactions that need approval. A dynamic approval workflow will allow an agency to define exceptions and specific rules to direct the approval requests accordingly. More control over the workflow means increased efficiency and minimal errors.

The ability to integrate with current software 

A dynamic approval process can be integrated with existing software like project management, reviews, and asset management systems. With a dynamic approval workflow, agencies no longer rely on slow and inefficient manual processes, reducing the risk of errors, delays, and miscommunication.

Increased accountability 

A dynamic approval workflow creates transparency, encourages collaboration, and provides accountability. Every team member knows their role within the process, reducing the risk of missed deadlines or communication breakdowns. Additionally, dynamic approval workflows create traceability for compliance and audit purposes, while automatic monitoring ensures that workflows are followed correctly.

Better customer experience 

For agencies, client satisfaction is key. Dynamic approval workflows lead to faster delivery of projects, quicker response times, and more flexibility to accommodate urgent requests. A streamlined process improves client engagement and trust, producing better customer experiences and satisfaction rates.

Dynamic approval workflows are a game-changer for agencies that require agility, flexibility, and quick decision-making on various projects. Automation and a configurable workflow increase efficiency, reduce errors, and improve accountability across all team levels. 

Let’s chat about how dynamic approval workflow can improve your business. Click here to learn more about Accountability.

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Monday Bytes: Why is dynamic approval workflow important?

Today’s fast-paced agency is characterized by constant changes, activities, and progress. Agility is essential for agencies of all sizes to stay ahead of the competition. In the creative services industry – where agencies cater to a wide range of clients, projects have varying scopes, priorities, and tight timelines – dynamic approval is critical.

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Surviving the Summer Heat: Tips for Working in New York City

Working in New York City in the summer can be an exciting experience. There’s always something to do with so much going on, from outdoor concerts to festivals and events. However, the heat and humidity can be brutal, making working in the city challenging. In this blog post, we’ll discuss some tips on surviving the summer heat and making the most of your time working in New York City.

  1. Dress appropriately: The first step to surviving the summer heat is to dress appropriately. Wear light-colored, loose-fitting clothing made from breathable materials like cotton or linen. Wear a hat and sunglasses to protect your face and eyes from the sun. It’s also important to wear sunscreen, even if you are only outside for a short period.
  2. Stay hydrated: The next step is to stay hydrated. Drink plenty of water throughout the day, even if you don’t feel thirsty. Avoid caffeine and alcohol, which can dehydrate you. Keep a water bottle at your desk, and if you’re out and about, take advantage of the many drinking fountains throughout the city.
  3. Take breaks: Working long hours in the heat can be exhausting, so it’s important to take breaks. If you work in an office, take a break and go outside for a walk during your lunch break. If you’re out for an extended time, take frequent breaks in the shade or indoors to rest and cool off.
  4. Use public transportation: New York City has an excellent public transportation system, including air-conditioned buses and trains. If your workplace is near a subway station, take advantage of it. If you have to drive, try to park in a covered garage to keep your car cool.
  5. Find indoor activities: Finally, if you’re looking for a break from the heat, there are plenty of indoor activities to enjoy. Visit a museum, catch a movie, or shop in an air-conditioned mall. New York City has something for everyone, so take advantage of all the city offers.

Working in New York City in the summer can be challenging, but with these tips, you can make the most of your time in the city while staying cool and comfortable. Remember to dress appropriately, stay hydrated, take breaks, use public transportation, and find indoor activities. With some planning and preparation, you can enjoy all New York City has to offer, even during the year’s hottest months. So, get out there and have some fun!