Top 6 Document Approval Software to Consider for 2024

Why do you Need a Document Approval System?

Compliance management

A document approval system streamlines the workflow and document management process. The documents in any organization must comply with policies and industry standards. Without a document approval system, standardization in document handling is not possible. A document approval workflow software improves compliance management within the organization.

Lack of clarity

One of the main reasons for delayed or missed approvals is a lack of clarity in roles for the approval of documents. When the roles are not clearly defined, approval of documents is often missed or delayed because approvers are not clear about the documents assigned to them for approval. The approval software enables clear assignment of roles so that there is no confusion or delay in document approval. The approver not receiving notification about the document that needs approval is another issue that arises due to lack of clarity.

Document version

Having disparate document sources creates confusion on document versions. The approver is not sure which version of the document to review and approve, as a result, the wrong version of the document is approved. A document approval system ensures that the latest version is presented to the approver for review and approval. As and when changes are made to the document, the version is automatically updated.

Deeper visibility

Manual document approval does not provide visibility into the status of the document. The employee submitting the document for approval is unaware of the status of the submitted document. An automated document approval system provides visibility and transparency into the status of the document so that the employee is always aware of the status of the document. Sometimes approvers do not have access to the document they are supposed to approve. This can lead to undue delays in approvals.

Confusion and chaos

One of the most common issues that occur during an approval workflow is the confusion and chaos that is caused by the document changes made by the approver. This causes confusion and delays in the approval process or even leads to incorrect or incomplete approvals.

A typical document approval workflow includes the following steps:

Employee creates the document ——–> document is sent to manager for review —–> manager reviews the document and approves/rejects the document accordingly —->the employee is informed about the approval—–> the approved document is sent to the next level in the workflow

How Does a Document Approval System Work?

Document workflows are different in every organization, depending on the unique needs of the organization. A typical approval workflow includes the following elements:

1. Documents

Documents that need approval like purchase orders, budget approvals, contract renewals, project proposals, and legal documents. These documents are created based on a standardized template or form.

2. Reviewers and approvers

Reviewers and approvers, typically managers, are the most important element in the approval process. They are in charge of reviewing the submitted document and deciding whether to approve or reject the document. When data is missing or incorrect, the approver sends the document back to the submitter for filling in missing information or correcting the information.

3. Permission levels

In any document workflow, permission levels are very important. The approval system must set clear permission levels for each user. These permission levels allow you to determine who can view, edit, approve, and reject submitted documents. With clearly set permission levels, employees cannot bypass an approval step. When there are multiple approvers, clear permission levels minimize the risk of fraud.

4. Due dates

Every task in a document workflow must have due dates. Working with set due dates instils a sense of urgency in employees so that they complete their work on time.

5. Business rules and conditions

Workflows operate based on business rules and conditions. Conditional rules specify what happens when certain conditions are met. Business processes that work according to rules and conditions are efficient and streamlined.

6. Signatures

Collecting approval signatures is a key element of the approval process. Signatures show that a supervisor or approver has reviewed and approved the document.

An approval workflow is a series of actions that must be completed so that a request can be approved or rejected. The steps in an approval workflow may vary according to the type of request. However, a typical approval workflow involves gathering information from stakeholders, making a decision, and communicating the decision. When a workflow is designed, the following points need to be considered –

➤ Who needs to be involved in the process?
➤ What information needs to be gathered?
➤ What are the conditions based on which decision is made?
➤ How will the results be communicated?

Each step in the workflow must be clearly defined, and who is responsible for which task must be clearly defined. In addition to these conditions, there should be a way to track the progress of the request so that each stakeholder can know the status of the request.

Here are the steps in creating an approval workflow:

Defining the approval starting points

The starting point of the approval process is the submission of documents like sales proposals, quotes, purchase orders, contracts, or invoices.

Defining the workflow

Approval workflows are classified into two groups- parallel and sequential. A parallel workflow is one where a series of steps are tackled at once to move the task to completion. An example of this type of workflow is employee onboarding where several tasks need to be completed simultaneously. A sequential workflow is a rules-driven workflow that proceeds along a sequential path based on which rules are triggered. An example of sequential workflow is the loan application process, where the previous step needs to be completed for the next step to occur.

Defining the approval conditions

The definition of approval conditions is an important part of the approval workflow. Approval or rejection of output is based on approval conditions.

Defining the results

The results component of an approval workflow is based on the action taken based on the workflow results.

Most document approval workflows involve the following activities:

➤ Submission
➤ Routing
➤ Reviewing/Approving
➤ Collaborating
➤ Tracking/Reporting
➤ Storage

Benefits of Automating Document Approval Process

The immediate benefits of automating the document approval workflow are time-saving and error reduction. The other benefits of automating the document approval workflow are given below.

1. Faster and more effective approvals

Automating the approval process helps track documents more effectively. Routing of the document is done automatically, which enables faster approvals. The approver is alerted of pending approvals so that there is no delay in document approval. Automation streamlines the approval request process so that in-context information is automatically shared with chosen approvers. Custom document routing software is another advantage of automated workflows.

2. Complete visibility on approvals

All the necessary details are collected to enable quicker and more efficient sign-offs. The approver and the submitter are aware of the status of the request at all times. Automated alerts and notifications ensure that the approver is aware of the status of the request.

3. Complete the audit trail

An automated document approval system helps maintain a complete audit trail of all the activity and communication that goes on through the approval process. Process parameters/information that needs to be recorded for audit purposes include:

➤ Who makes the decision?
➤ What are the factors that lead to approval/rejection?
➤ When was the decision made?

Automation helps record this information and other important information required for in-built audit trails.

4. Maximum compliance

Implementing a document approval process ensures process compliance in every single task. The approval process orchestrated by a system standardizes the approval process and runs it on autopilot. In processes that have multiple approval levels, from the first approver to the last everyone is contextually guided based on the business rules.

5. Increased productivity

Automation enables faster and clearer communication between all the stakeholders in the approval process. Automated approval workflow assists the stakeholders with the right context at every touchpoint, which boosts the efficiency of the ecosystem.

6. Higher transparency, control, and reliability

Decision-making is a highly collaborative process where several teams have to collaborate to carry out the process smoothly. Any discrepancy in process flow can interfere with the smooth handoff of information required to make final approval decisions. All the decisions and supporting reasons are captured in the approval workflow by providing a single source of truth for all stakeholders. Improved transparency for the stakeholders provides admins better control over the process by establishing rules to follow.

7. Reduction in costs

Automating approval-based processes saves a significant amount of time for approvers. The approver cycle time is drastically reduced through automation, which cuts down overall spending and costs.

8. Decrease in errors

Workflow interfaces provide an intuitive way to configure and govern all processes. Automated approvals enable the agent to track events with information captured within the tool and take necessary actions. The workflow can be pre-configured to monitor checkboxes to sign off approval requests, change approval status, and even manage pending requests.

9. Improved work culture

Employees getting involved in more strategic activities as opposed to mundane activities boosts their morale. Employees will be more satisfied and productive with a system that helps them focus on their subject matter expertise and competency on tasks.