October 7, 2026 · Guides

Maker-Checker Approvals and Voucher Authorisation

Maker checker loan software splits every sensitive entry between two people, so no single clerk can create and approve the same payment. If you run a society, Nidhi or small lending office, this is one of the cheapest ways to protect cash and records. Below we explain the feature, how a branch works with it, and what to test before you commit.

In this guide

What the feature is
How to use it
How it helps the business
Common mistakes
What to check in a demo
Related reading
FAQs

What the feature is

The maker is the person who enters a voucher, a loan sanction or a change to a member record. The checker is a second person, with higher or different rights, who looks at it and either approves or rejects. Until the checker acts, the entry stays pending and does not touch the ledgers.

Voucher authorisation is the same idea applied to accounts. A payment voucher for a supplier, a transfer between heads or a large cash withdrawal waits for authorisation. Approval levels add a ladder: small amounts need one checker, larger ones need the manager, and the biggest may go to a director.

On the core banking system software page, Taxhint lists multi-tier access control, customisable user rights and user activity logs. Those are the building blocks. A specific maker-checker flow for your vouchers is something we would ask you to see in a live demo rather than assume. The wider picture is in the buyer’s guide to loan and society software.

How to use it

Set the rules once, then let the daily routine carry them. A typical setup looks like this.

The owner or manager lists which actions need approval: payment vouchers, loan sanction, interest changes, edits to a closed record.
For each action, fix the amount limits and who is allowed to check. A clerk is never the checker for their own entry.
The maker enters the voucher with the narration and supporting details, then submits it.
The checker opens the pending list, compares the voucher with the bill or file, and approves or rejects with a short reason.
Only after approval does the entry post. A rejected one goes back to the maker.
At day end, the manager checks that nothing is left pending. This links well with the routine in day begin, day end and cash book features.

The same ladder applies to loans, as discussed in loan application and approval workflow.

How it helps the business

The main gain is fewer wrong or doubtful entries reaching the books. A cashier who knows a second person will read the voucher is more careful, and honest mistakes get caught the same day instead of surfacing at audit.

It also changes who can be blamed and who can be trusted. If a payment looks odd, the record shows who made it, who approved it, and when. Your auditor can follow this trail without a long conversation. The detail of logs and roles is covered in audit trail, user roles and security in loan software.

The numbers to watch are the count of entries pending at the close of day, the number rejected in a week, and how many vouchers a single checker approves in a few minutes. A checker who approves fifty vouchers in one click is not checking.

Common mistakes

Making the owner the checker for everything. The owner becomes a bottleneck, and the pending list grows. Set limits so small items clear at a lower level.
Sharing a password between maker and checker. Then the control exists only on screen. Every person needs their own login.
Letting the checker edit. If the checker can change figures, the record stops showing who decided what.
Skipping the control for urgent items. Exceptions become the habit. Keep one written rule for emergencies and log it.
Never reading the rejections. A pattern of rejected vouchers from one clerk is a training point.

What to check in a demo

Create a voucher as one user and try to approve it as the same user. It should be refused.
Can you set different approval limits for different roles?
Where is the pending list, and does it show age and amount?
What does the checker see before approving: the voucher alone, or the supporting details too?
After approval, can the maker still change the entry?
Does the user activity log show the maker, checker and time for that voucher?

Whether a particular approval structure is needed for your entity is a matter for your Act, Rules or regulator and your CA.

Want to see this working on your own data? See the Core Banking System Software, ask for a live demo on +91 93117 95484, or write to mail@taxhint.in.

FAQs

What does maker-checker mean in loan software?

It means one person prepares an entry and a different person approves it before it takes effect. The two cannot be the same user, which is the whole point of the control.

Does Taxhint software have maker-checker?

The core banking page lists multi-tier access control, customisable user rights and user activity logs. Whether a specific maker-checker flow fits your society is something to confirm in a live demo.

Do small societies need approval levels?

Even a three-person office gains from it. The person who writes a payment voucher should not be the person who releases the cash.

Can the checker edit the entry?

Usually not. A checker should approve or send it back with a reason, so the maker fixes it and the record shows who changed what.