Expense Approval: Definition and Process

What is the Expense Approval Process?

The expense approval process is a structured system that creators and businesses follow to review and authorize spending before reimbursement or payment. It ensures that expenses comply with company policies or project budgets, maintaining transparency and financial control. This process can involve manual reviews or automated workflows for faster approvals, from submitting expense reports to receiving the necessary sign-offs.

How Expense Approvals Work for Creators

For creators, managing expenses can be part of daily work, whether it’s for travel, production costs, or client meetings. Here’s how expense approvals typically play out in a creative context:

  • Travel for projects or shoots: Covering flights, hotels, and meals during creative work or collaborations.
  • Equipment purchases: Tools, cameras, software, or other essential gear needed for content creation.
  • Client meetings and entertainment: Meals, gifts, or events held for potential business collaborations or sponsorship deals.

Each expense goes through an approval workflow, generally outlined by a company or project-specific policy.

Expense Approval Policies for Creators

Most creators work within defined guidelines for expense approvals, especially when collaborating with brands or teams. These policies typically outline:

  • Who has the authority to approve creator expenses.
  • Maximum spending limits for various types of expenditures.
  • Documentation requirements, like receipts or invoices, which are crucial for reimbursement.

Types of Creative Expenses Requiring Approval

Here are some common categories of expenses that creators often need approval for:

  • Travel and accommodation for collaborations or projects
  • Meals and entertainment with clients or partners
  • Software, tools, or equipment purchases for content creation

For larger expenses, like new equipment or international travel, creators might need approval from senior management or project heads.

Examples of Creator Expense Approvals

Advances for Creative Projects

Sometimes creators need advances for upcoming expenses, such as travel for shoots or production-related costs. Companies may provide advances through prepaid cards, which require prior approval before funds are loaded. This allows easy control over spending and tracks transactions efficiently.

Approval for Creative Work-Related Expenses

Creators typically submit their expenses for review through a company’s approval system—whether a manual process or an automated platform. This includes a detailed breakdown of costs, explanations of the necessity for the expense, and required receipts for reimbursement.

Recommended Reading

FAQs

What types of expenses do creators typically need approval for?

keyboard_arrow_down

Creators often need approval for expenses related to travel, such as flights and accommodation for shoots or collaborations, as well as equipment purchases like cameras or software needed for content creation. Additionally, client meetings or entertainment expenses, including meals or events, may also require approval.

How do I submit my expenses for approval as a creator?

keyboard_arrow_down

Creators usually submit expenses through a company's designated approval system. This may include digital forms or automated platforms where you provide a breakdown of your costs, explain why the expense is necessary for your work, and attach receipts or invoices for verification.

Can I request an advance for business-related expenses?

keyboard_arrow_down

Yes, creators can often request advances for upcoming expenses like travel or project-related costs. Advances are typically issued through prepaid debit or credit cards, which require prior approval before funds are loaded, helping to manage spending limits and ensure proper tracking.

What documentation do I need to submit for expense approval?

keyboard_arrow_down

When submitting expenses, creators need to provide detailed documentation, including receipts, invoices, and a breakdown of the costs. The documentation should align with company policies, outlining the purpose of each expense and how it contributes to the creative work.

How can I ensure my expense approvals are processed quickly?

keyboard_arrow_down

To speed up the approval process, ensure that all necessary documentation is included, such as receipts and a clear justification for the expense. Using automated platforms can also help streamline the process, as they automatically check submissions for compliance with company policies, reducing delays and errors.

Explore what you can do with Otto