Payment Approval Matrix + MakerāChecker Controls: Stop Fraud, Duplicates & Cash Leakage
In most SMEs, cash leakage doesnāt happen through ābig fraudā. It happens through small gaps: wrong bank details, duplicate payments, unapproved advances, and vendor master edits. A CFO control system fixes this without slowing the business.
The person who creates a payment should not be the person who approves and releases it.
What is an āApproval Matrixā in payments?
Itās a simple rule-set that answers: āWho can approve what, and under which conditions?ā Your matrix typically depends on:
- Amount slab (ā¹0āā¹25k, ā¹25kāā¹2L, etc.)
- Payment type (vendor, advance, reimbursement, statutory)
- Vendor risk (new vendor vs verified vendor)
- Exception conditions (bank change, urgent payment, round-sum requests)
MakerāChecker in 30 seconds
- Maker prepares payment request + proof
- Checker verifies documents + vendor details
- Approver authorizes based on matrix
- Releaser executes payment in bank portal
Interactive: Build Your Approval Matrix
Choose your business size and risk appetite. We generate a practical matrix + risk score.
We build approval workflows + audit trails in your finance process (ERP / Google Sheets dashboard / bank SOP).
| Amount Slab | Maker | Checker | Approver | Mandatory Checks |
|---|
Payment SOP (Simple + Audit-Ready)
A payment SOP prevents āWhatsApp approvalsā and missing proofs. Hereās a clean SOP you can implement immediately.
1) Payment request
- Invoice + PO/GRN (if applicable)
- Vendor GSTIN/PAN mapped to vendor master
- Due date + reason for early payment (if any)
2) Verification (checker)
- Duplicate check (invoice no, amount, vendor)
- Bank details match vendor master
- TDS/GST/RCM treatment reviewed
3) Approval (as per matrix)
- Amount slab approvals followed
- Exception flags require higher approval
- Approve with audit trail (email / ERP / workflow)
4) Release + proof
- Bank transfer done by separate releaser (if possible)
- UTR captured and stored
- Invoice marked paid + linked to UTR
Minimum payment checklist (printable logic)
| Check | Why | Evidence |
|---|---|---|
| Duplicate invoice check | Prevents double payment and vendor disputes. | System search / register screenshot |
| Vendor bank verification | Wrong bank changes are a major fraud vector. | Cancelled cheque + callback confirmation |
| Tax treatment | Wrong TDS/GST creates compliance and cash costs. | Tax computation note |
| Approval proof | Avoids āI didnāt approveā confusion later. | Workflow approval / email / ERP log |
Controls are not bureaucracy ā they are cash protection.
A clean approval matrix reduces errors, speeds decision-making, and creates a reliable audit trail. If you want, we can audit your current payment process and implement a CFO-grade control system.