Dual approval adds an extra layer of oversight and control to financial transactions. Here’s how to effectively implement dual approval:

1. Define Approval Levels

• Set criteria for dual approval based on payment type, amount, or importance.
• Determine which payments require dual approval and establish thresholds for single vs. dual approval.

2. Roles and Responsibilities

• Assign specific roles and responsibilities for approvers at each level.
• Designate primary and secondary approvers based on their authority and departmental roles.

3. Automate Approval Workflow

• Use invoice management or workflow automation software to set up dual approval workflows.
• Configure stages where payments are first routed to the primary approver and then to the secondary approver.

4. Approval Criteria

• Define criteria for each approver level, including financial limits, compliance requirements, and documentation standards.
• Ensure both approvers review and validate the same criteria.

5. Notification and Alerts

• Set up automated notifications to alert approvers when payments require their approval.
• Include details such as payment amount, vendor information, and urgency.

6. Audit Trail

• Maintain a detailed audit trail of all approval actions, including timestamps, approver identities, and comments.
• Ensure the audit trail is accessible for review and compliance checks.

7. Escalation Procedures

• Establish procedures for cases where dual approval isn’t obtained within the set timeframe.
• Define escalation contacts and response times to resolve issues promptly and avoid delays.

8. Integration with Financial Systems

• Integrate dual approval workflows with your financial systems (e.g., ERP or accounting software).
• Ensure smooth data synchronization and visibility across all transactions.

9. Training and Awareness

• Educate approvers and stakeholders on the dual approval process, their roles, and compliance requirements.
• Provide training on using the approval system effectively.

10. Regular Review and Optimization

• Periodically review dual approval workflows to find optimization opportunities.
• Gather feedback, analyze cycle times, and adjust processes based on bottlenecks and compliance metrics.