Approval flows define the steps an expense must go through before being reimbursed or booked in the system. In Factorial, each flow includes:
- A name and description (to make flows easy to identify).
- One or more levels of approval.
- At each level, one or more approvers.
- Approvers chosen by role or by selecting specific people.
Available approver roles
When creating an approval flow, you can assign approvers using the following roles:
- Self-approval → employees can approve their own expenses. Rarely used, only for founders or top-level executives.
- Manager → the employee’s direct line manager.
- Time-off approver → the person already designated to approve the employee’s absences. Useful for keeping consistency across HR processes.
- Admins → system administrators in Factorial. Commonly used for Finance or HR.
- Team → a whole team (all members will be notified and any can approve).
- Team Lead → the lead of the employee’s assigned team.
Recommended flows by company type
Startup (up to ~50 employees)
- Goal: Keep approvals light and avoid delays.
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Suggested flow:
- Name: Startup standard approval
- Description: One-level flow for quick expense validation
- Level 1: Manager
If there are founders or C-levels without managers, create a dedicated flow using Self-approval or Admins as the approver.
SME (50 to ~500 employees)
- Goal: Add a Finance layer while keeping flows efficient.
-
Suggested flow:
- Name: SME 2-step approval
- Description: Manager checks business relevance, Finance ensures compliance
- Level 1: Manager
- Level 2: Admins (Finance team)
Optionally, replace Level 2 with Team Lead or Time-off approver if budget control is managed at that level.
Multinational (500+ employees or multiple entities)
- Goal: Ensure consistent controls across departments and legal entities.
-
Suggested flow:
- Name: Multinational entity approval
- Description: Multi-step validation for department and entity compliance
- Level 1: Manager
- Level 2: Team Lead or Department Head (set up as Team Lead role)
- Level 3: Admins (Finance team of the local entity)
For high-risk or high-spend departments (like Sales or Operations), you may add a Level 4 with the Entity Director (assigned directly as a person).
Best practices
- Always give flows clear names and descriptions so Finance and HR know which employees are covered.
- Start simple - one or two levels usually suffice. Add more only when absolutely needed.
- Use roles, not individuals, where possible. This prevents broken flows when people change positions.
- Match company culture - startups value speed, multinationals value control. Adapt your flows accordingly.
- Review regularly - approval structures should evolve with your organization.