Budget Approval Workflow for Real Estate

# Budget Approval Workflow - Real Estate

## Purpose
Implement to maintain financial controls while keeping approval times short and avoiding bottlenecks for routine expenses.

## When to Use
A tiered budget approval workflow that routes spending requests to the appropriate decision-makers based on amount, category, and department.

## Instructions
1. Review the template below and familiarise yourself with the structure
2. Replace all [bracketed placeholders] with your real estate business details
3. Customise the tone and formatting to match your brand
4. Save in your preferred tool (Xero or Slack)

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## Budget Approval Workflow

### Trigger
Team member needs to make a purchase or commit spending that is not already covered by a pre-approved budget line.

### Steps

**Step 1: Submit Spending Request** (Owner: Requesting Team Member) - Before making any commitment
Complete the spending request form (Google Form or Notion template) with: item/service description, business justification, estimated cost (including GST), vendor name, urgency level, and budget category.
- Tool: Notion or Google Forms
- Output: Spending request submitted

**Step 2: Auto-Route Based on Amount** (Owner: Automated via Zapier) - Immediate
The request is automatically routed based on the total amount:
- Under $500: Department Manager only
- $500 to $2,000: Department Manager + Finance Manager
- $2,000 to $10,000: Department Manager + Finance Manager + Director
- Over $10,000: Department Manager + Finance Manager + Director + Board/Owner
A Slack notification is sent to the first approver.
- Tool: Zapier + Slack
- Output: Request routed to appropriate approver(s)

**Step 3: Check Budget Availability** (Owner: Finance Manager or Bookkeeper) - Within 1 business day
Review the current budget position for the relevant department and category. Confirm whether funds are available. If the request would exceed the allocated budget, flag this in the approval notes.
- Tool: Xero (budget reports)
- Output: Budget availability confirmed or flagged

> Decision Point: If budget is available, proceed to Step 4. If budget is exceeded, the Finance Manager notifies the requester and the Director. The Director decides whether to approve an over-budget expenditure, reallocate funds, or decline the request.

**Step 4: First-Level Approval** (Owner: Department Manager) - Within 1 business day
Review the request for business necessity, alignment with department goals, and value for money. Approve, request more information, or decline with a reason. Respond via Slack.
- Tool: Slack
- Output: First approval granted, declined, or information requested

**Step 5: Second-Level Approval** (Owner: Finance Manager) - Within 1 business day
For requests over $500, review the financial impact, GL coding accuracy, and compliance with purchasing policies. Approve or escalate any concerns.
- Tool: Slack + Xero
- Output: Second approval granted or concerns raised

**Step 6: Final Approval** (Owner: Director/Owner) - Within 2 business days
For requests over $2,000, review the strategic alignment and overall financial impact. Provide final sign-off via Slack or email.
- Tool: Slack
- Output: Final approval granted

**Step 7: Notify and Process** (Owner: Automated via Zapier) - Immediate upon final approval
Notify the original requester that their spending has been approved. Include any conditions or notes from approvers. The requester may now proceed with the purchase.
- Tool: Zapier + Slack
- Output: Requester notified, authorised to proceed

**Step 8: Record the Expense** (Owner: Requester + Finance) - Within 2 business days of purchase
The requester submits the receipt or invoice. Finance records the expense in Xero with the correct GL code, tracking category, and approval reference. Attach the approval trail documentation.
- Tool: Xero
- Output: Expense recorded and coded in Xero

### Completion Criteria
- [ ] Spending request submitted with full details and justification
- [ ] Budget availability confirmed
- [ ] All required approvals obtained per threshold
- [ ] Purchase made within approved amount
- [ ] Expense recorded in Xero with approval documentation

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**Complexity:** intermediate | **Setup time:** 15 minutes | **Tools:** Xero, Slack, Zapier

Note: This template has been tailored for real estate businesses in Australia. Adjust terminology and compliance references to match your specific context.