Invoice fraud doesn’t always look like a scam — sometimes, it looks like routine. A quick “approve,” a rushed payment, a small detail overlooked. But those small details? That’s where thousands of dollars can quietly disappear.
That’s why every smart property manager needs a strong approval workflow. It’s not just a process — it’s protection. By adding structure and accountability to your payment system, you create a safeguard that ensures every invoice is valid, every payment is justified, and every dollar leaves a clear trail.
What Exactly Is an Approval Workflow?
An approval workflow is a step-by-step process that every invoice must go through before it’s cleared for payment. Instead of having a single person handle everything, approvals are shared across multiple checkpoints — giving your team a built-in safety net.
In property management, that might look like this:
The property manager confirms that the service was completed or the product was received.
The accounting team reviews the invoice details, checking them against work orders, contracts, or purchase requests.
A senior manager or owner gives the final approval for higher-value invoices before any funds are released.
This structure adds layers of review that prevent errors, strengthen accountability, and make every transaction easier to trace.
Why Invoice Fraud Happens
Invoice fraud doesn’t just happen because someone sets out to steal — it often happens because there aren’t enough safeguards in place. It tends to occur when:
One person is responsible for receiving, approving, and paying invoices.
There’s no clear, standardized review process.
Teams rely heavily on manual systems like spreadsheets or paper invoices, where errors can easily go unnoticed.
When the same person is in charge of every step, it’s much easier for fraudulent, duplicate, or incorrect invoices to slip through the cracks.
How Approval Workflows Protect Your Finances
A well-designed approval workflow doesn’t just make things look organized — it actively reduces financial risk. Here’s how:
Separation of Duties: No single person controls all parts of the payment process.
Cross-Verification: Each invoice is matched against supporting documents before payment.
Escalation for Exceptions: Unusual or high-value payments automatically get a second review.
Audit Trail: Every approval leaves a digital footprint, making it easy to track decisions later.
Automation: Platforms like AppFolio or Buildium can automatically route invoices, send approval reminders, and flag potential duplicates.
Together, these steps create a strong internal control system that minimizes both intentional fraud and unintentional mistakes.
Best Practices for Property Managers
To make your approval workflow more effective:
Set approval limits: Require multiple sign-offs for payments above a set amount.
Use technology: Leverage property management tools to automate routing and notifications.
Educate your team: Train staff to spot irregularities like duplicate billing or suspicious vendor details.
Review vendors regularly: Keep your approved vendor list updated and remove inactive or unverified ones.
Final Thoughts
Approval workflows might seem like just another layer of paperwork, but in reality, they’re one of the most important tools for protecting your property’s finances. By ensuring checks and balances, verifying details, and using automation where possible, property managers can reduce errors, prevent fraud, and build stronger financial transparency.
At the end of the day, property management runs on trust — from owners, tenants, and vendors alike. And when your approval process is structured, transparent, and consistent, that trust only grows stronger. You’re not just paying invoices — you’re protecting inv