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Sumit Arora

Full-Stack Architect

Brisbane, Australia
January 2026
8 min readAccounting Workflow
Accounting / CSR

CSR Expense Management

Bi-directional approval flow between service recipients and providers. How we replaced 15+ project spreadsheets with a single audit-ready system.

The Spreadsheet Trap

A corporate foundation managing CSR projects across rural electrification, vocational training, and environmental initiatives. Each project manager maintained their own expense spreadsheet. Finance consolidated manually every month.

It worked at 3 projects. Then they grew to 15+. The accounting firm processing payments spent days just reconciling numbers. Audit prep became a nightmare.

The Two-Party System

This workflow is unique because it involves two distinct organizations with different responsibilities. Work bounces between them until completion.

Reporter (Service Recipient)

Creates expenses, approves payments

Open

Initial state when expense created

In Clarification

Returned for more information

In Approval

Awaiting approval

Approved

Approved for payment

Rejected

Permanently rejected

On Hold

Temporarily paused

Assignee (Service Provider)

Reviews, processes, books payments

In-Review

Being reviewed by accounting

Submitted For Approval

Sent for approval

Booking

Recording in accounts

Ready to Upload

Prepared for payment

Paid

Payment released

Closed

Final terminal state

*All statuses are configurable per organization

Four Possible Paths

Not every expense follows the happy path. Here are all the ways work can flow through the system.

Happy Path Sequence

Open
In-Review
Submitted
In Approval
Approved
Booking
Ready
Paid
Closed

Expense Types & Mapping

Four types of expenses, each with different tracking requirements.

General Expense

Standard expenses without special mapping

ProjectCategoryNarrationAmountTDS (optional)

PO Mapped

Linked to approved purchase orders

SupplierPO DateQuantitiesRatesRemaining Balance

MoU Mapped

Tied to Memorandums of Understanding

MoU ReferenceAmount/Quantity BasedBalance Tracking

Policy-Based

Governed by company policies

Policy RulesAutomatic LimitsCompliance Checks

Project Hierarchy

Expenses organized into a three-level hierarchy for flexible reporting.

Example: Rural Electrification Programme
Projects
Rural ElectrificationVocational TrainingConserve My Planet
Sub-Projects
KharagpurNagalandPuri
Categories
Solar PowerTravellingFreightEquipment

System Architecture

Microservices architecture with clear separation of concerns.

1
ReactJS Frontend
Responsive web interface for both parties
2
API Gateway
Request routing, validation, rate limiting
3
Auth Service
JWT-based security (RFC-7519)
4
Expense Workflow Service
State machine, transitions, business logic
5
File Service
Encrypted cloud storage for documents
6
Notification Service
SMS and email at key transitions
7
Audit History Service
Comprehensive activity logging
8
Reporting Service
Configurable reports by project, category, date

The Results

2 days
→ 2 hours
Monthly consolidation
Zero
lost documents
Everything in one place
1 click
audit export
vs 2 weeks prep

Lessons Learned

1

Bi-directional flows need clear ownership

At any moment, exactly one party owns the expense. No ambiguity about who should act next.

2

Clarification loops are normal

Plan for work to go backward. The system should make it easy, not punishing.

3

Configurable statuses save future headaches

Business processes evolve. Hardcoded statuses become technical debt quickly.

4

Audit trail is the killer feature

In accounting, "who approved what when" isn't a nice-to-have. It's the whole point.

5

Notifications at transitions reduce follow-ups

"Where is my expense?" questions dropped dramatically with automatic alerts.

Drowning in Expense Spreadsheets?

Whether it's CSR projects, internal reimbursements, or multi-party payment flows—we build expense management systems that scale with your business.