What is a maker-checker process?
The maker-checker process is a workflow that requires the approval of at least two individuals to agree to a transaction. Breaking it down, this process involves two parties where there is an originator (the party who initiates the transaction) and the approver (the party who confirms/authorises the transaction).
This way, businesses can implement strict controls over their finances and avoid any unapproved spending among employees. Above that, it also helps to reduce human errors such as keying in the wrong figure, which can add up to a substantial amount over time. This is also why the maker-checker process is commonly referred to as the “4-eyes” process, indicating the second pair of eyes that helps to ensure the accuracy of a transaction.
The benefits of multi-level approval for your business
Having a multi-level approval process is often regarded as a best practice among businesses. It has vastly improved payment processes, among other benefits. Here is how multi-level approval can benefit your business.
1. Prevents human error
The maker-checker process is a business process designed to mitigate the risk of human error. With a two-step process where one initiates the payment and the other approves it, this process allows for a better reviewing process.
When data gets checked twice, it promotes better quality control and protects a business from errors that may impact the cash flow, operations, or reputation.
In principle, the maker-checker process may have already been happening. These may be “yes” or “no” questions that happen on communication platforms like WhatsApp or Slack, or emails to the respective reviewers.
However, this manual process can mean a work duplication when it is done outside of a platform because the instructions (be it an approval, rejection, or amendment) must still be reflected on the submission.
Having an official maker-approval workflow ensures all approvals (or rejections) and any amendments to the original submission are well documented. On top of this, it allows the Checker to have a purview on the finer details of the transactions like the supported documentation, thereby increasing the transparency in the decision-making process.
4. Prevents fraudulent transactions
The maker-checker process increases the accountability of each member of the organisation. By that, no one within the company can misuse their access to company funds for reasons that do not benefit the company.
In this case, the Checker plays the role of a gatekeeper, who makes certain that all transactions made are not fraudulent, in line with the aims of the organisation, and most importantly, do not violate any regulations.
How the maker-checker process works on Wallex
During the set-up process on Wallex, you can configure the Maker and the Checker.
The approver matrix
The approver matrix can be set up as a single or multi-level approver matrix. However, each person in the approver matrix needs to be an approved user of the company’s account.
- The number of approvals required can change depending on the value of the transaction and the business’s unique needs. (E.g., At least one Level 2 approval is required for transactions between $500,000 SGD – $1,000,000 SGD)
- A group of approvers can be created such that any of the users in that group can approve the relevant transaction.
Transacting using Approver Matrix
Steps for Makers:
- Click on Send Money in the menu and set up your FX transaction.
- Fill in the transaction details in section 1.
- Select a bank beneficiary in section 2.
- Add a purpose of payment in section 3.
- If the account is set up with an Approver Matrix, you will see section 4, which allows you to select the Approver (Checker) for this transaction.
- After selecting the relevant Approvers, tap on Send for approval.
- The payment request is now created and awaiting approval from the assigned approvers.
Steps for Checkers:
- Log in to your Wallex account and click on Pending Approval in the main menu.
- Find the relevant transaction and click on View to see the details of the transaction.
- If the transaction and the details are valid, click on Approve to process the transaction; if not, click on Reject to send it back to the originator of the transaction.
- Authenticate the transaction by entering the OTP received on the registered email address and click Send.
- Any subsequent approvers will follow the same steps until the transaction is fully approved.
How Wallex can help streamline your payments
The maker-checker process, also known as the dual approval process, works hand-in-hand with the underlying platforms. On Wallex, you can set up your maker-checker process within seconds, automate it, or even perform bulk payments.
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