Most MSPs using Autotask don't realize their approval workflows are creating expensive bottlenecks that can add 30% to their cost per ticket. The culprit? Manual approval processes that should be automated.
I've seen MSPs with 20-person teams spending entire afternoons just processing timesheet approvals. One shop I worked with had technicians waiting three days to get expense reports approved for client visits. Meanwhile, their billable hours sat in limbo, delaying invoicing and frustrating customers who wondered why their tickets weren't progressing.
The math is brutal. If your average ticket costs $150 to resolve and manual approvals add 30 minutes of administrative overhead per ticket, you're looking at an extra $45 in labor costs. Multiply that across hundreds of tickets monthly, and you're hemorrhaging thousands in preventable expenses.
This isn't about perfectionism. It's about profit margins in an industry where every dollar counts.
The Hidden Labor Costs of Manual Approvals
Manual approval processes create a cascade of hidden costs that compound throughout your organization. When managers spend 45 minutes daily reviewing timesheet submissions, that's nearly four hours weekly of expensive talent doing administrative work instead of strategic tasks.
Consider the typical approval workflow: A technician submits a timesheet, the manager gets an email notification, reviews each entry for accuracy, cross-references project codes, and either approves or sends it back with corrections. The technician then resubmits, starting the cycle again.
Here's where it gets expensive:
- Manager time: $75/hour managers spending 20% of their day on approvals
- Technician rework: Failed approvals requiring resubmission and explanation
- Delayed billing: Approved timesheets sitting in queues while invoicing waits
- Client dissatisfaction: Tickets appearing stalled while paperwork processes
I've calculated that MSPs with poorly designed approval workflows spend an average of 2.3 hours per day on approval-related tasks across their entire team. At blended labor rates of $65/hour, that's $150 daily in pure administrative overhead.
The Autotask timesheet approval system offers bulk approval features specifically to address this problem, but most MSPs never configure them properly.
How Approval Delays Impact Billable Hours and Client Satisfaction
Approval delays create a domino effect that touches every aspect of your operation. When timesheets sit waiting for approval, your billing cycle extends. Instead of invoicing within 48 hours of work completion, you're pushing invoices out 5-7 days.
This delay costs you in multiple ways:
- Cash flow impact: Extended billing cycles mean longer accounts receivable periods
- Client perception: Customers notice when ticket updates stop coming
- Resource utilization reporting: Delayed approvals skew your profitability metrics
- Compliance issues: Some contracts require timely billing submission
One MSP I analyzed had 23% of their billable hours stuck in approval limbo at any given time. Their average invoice processing time was 8.2 days from work completion to bill generation. After streamlining approvals, they cut this to 2.1 days and improved cash flow by $47,000 monthly.
The client satisfaction angle is often overlooked. When a ticket shows no activity for days because the associated timesheet hasn't been approved, clients assume nothing is happening. They start calling, emailing, and escalating. Your service desk spends time explaining internal processes instead of solving problems.
Expense report delays hit differently but just as hard. Field technicians need rapid reimbursement for travel, equipment purchases, and client site visits. When expense approvals drag on, technicians either avoid necessary expenses (hurting service quality) or front the money themselves (creating employee satisfaction issues).
Identifying Your Workflow Bottlenecks
Most MSPs operate approval workflows by feel rather than data. They know approvals take "too long" but can't pinpoint where delays actually occur. Autotask provides several tools to diagnose these bottlenecks systematically.
Start with the Unsubmitted Timesheets report under Timesheets > Reports. This shows you patterns in submission behavior. If technicians consistently submit timesheets late in the week, your managers get hit with approval backlogs every Friday afternoon.
Next, examine your approval queues:
- Average items waiting approval per manager: Should be under 10 at any time
- Time from submission to approval: Target under 24 hours for routine items
- Rejection rates: Over 15% indicates process or training problems
- Resubmission frequency: Multiple revisions suggest unclear approval criteria
Use Autotask's widgets to create a dashboard showing approval metrics. The preconfigured "Timesheets waiting my approval" widget gives managers real-time visibility into their queues. Customize it to show aging - items waiting over 48 hours need immediate attention.
Look for these common bottleneck patterns:
- Single points of failure: One manager approving everything while others sit idle
- Approval clustering: All submissions hitting the same time periods
- Process confusion: High rejection rates due to unclear requirements
- Tool abandonment: Managers processing approvals outside Autotask
Streamlining Manager and Supervisor Workflows
Effective approval streamlining starts with role clarity. Not every submission needs the same level of scrutiny. Routine timesheets from established technicians require different handling than complex project expenses from new hires.
Configure approval hierarchies based on risk and complexity:
Low-risk approvals (routine timesheets, standard expenses): - Use bulk approval features - Set automatic approval thresholds - Enable proxy time entry for managers - Route to least busy approver
High-risk approvals (large expenses, overtime hours, project overruns): - Require detailed review - Mandate supporting documentation - Escalate to senior management - Track approval reasoning
The proxy time entry feature transforms manager efficiency. Instead of rejecting timesheets for minor errors, managers can fix simple mistakes directly. A missing project code or incorrect work type becomes a 30-second correction instead of a full rejection cycle.
Implement approval batching. Rather than processing submissions throughout the day, designate specific approval windows. Morning and end-of-day batches prevent constant context switching while maintaining reasonable turnaround times.
Configure email notifications strategically. Managers don't need immediate alerts for every submission, but they do need escalation notices for aging approvals. Set up reminders for items waiting over 24 hours.
Automating Routine Decisions
The biggest workflow gains come from eliminating routine decisions entirely. Autotask's approval settings let you automate many standard scenarios without sacrificing control.
Set up automatic approval for: - Regular timesheets under 40 hours from established employees - Standard mileage reimbursements within preset limits - Time entries on pre-approved projects with confirmed budgets - Recurring expense categories like monthly software licenses
Use contract-level settings to combine timesheet and financial approvals. The "On timesheet approval" billing setting eliminates duplicate review cycles. When a manager approves time entries, they automatically become billable items.
Configure approval delegation during manager absences. Nothing kills efficiency like approvals backing up because someone is on vacation. Set up temporary delegation paths and ensure backup approvers have proper permissions.
Implement exception-based workflows. Instead of approving everything manually, configure rules that flag only unusual items: - Hours exceeding normal patterns - Expenses above department limits - Time entries on closed projects - Work performed outside normal schedules
Measuring the Real Impact
Track your improvement with specific metrics that tie directly to profitability. Approval efficiency isn't just about feeling better - it's about measurable business impact.
Key performance indicators to monitor:
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Approval Speed Metrics: - Average approval time (hours from submission to approval) - Percentage of approvals completed within 24 hours - Backlog size at end of each business day
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Quality Metrics: - Rejection rate percentage - Number of approval cycles per submission - Time spent on approval-related corrections
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Financial Impact Metrics: - Days from work completion to invoice generation - Cash flow improvement from faster billing cycles - Reduced administrative overhead costs
Most MSPs see 40-60% reduction in approval processing time within the first month of optimization. More importantly, they typically cut invoice generation time by 3-4 days, improving cash flow significantly.
The goal isn't zero manual approvals. It's intelligent automation that catches problems while letting routine work flow efficiently. When your managers spend their time on exceptions rather than rubber-stamping obvious approvals, your entire operation becomes more profitable and responsive.
Your approval workflows should accelerate business operations, not bog them down. Every minute saved on administrative overhead is a minute available for client service, business development, or strategic planning. In the MSP world, that's the difference between surviving and thriving.