---
title: "What is maker-checker?"
description: "Maker-checker explained in plain English: definition, how it works, an example, and how it appears in QuickBooks and Xero."
url: https://ledgerbpo.com/glossary/maker-checker/
updated: 2026-09-11
publisher: LedgerBPO (SS Support Network LLC)
language: en-US
---

# What is maker-checker?

Glossary

Maker-checker is an internal control where the person who creates or enters a transaction, the maker, is different from the person who reviews and approves it, the checker, so no single person can post an error or a fraudulent entry unchecked.

Updated September 2026

## How maker-checker works

The maker-checker principle is common in accounting, banking and payment processing because it splits execution from approval. In bookkeeping, a maker might enter bills, categorize transactions or prepare a bank reconciliation, while a checker reviews that work against source documents before it is finalized or before a payment is released.

The control works best when the checker has genuine authority to reject or send work back, and when the split is enforced consistently rather than skipped under time pressure. Maker-checker does not require expensive software; it can be run through a review checklist and sign-off log as easily as through an automated approval workflow.

## Example

A bookkeeper, the maker, enters and categorizes the month's bank transactions and drafts the reconciliation. A second, more senior accountant, the checker, reviews the reconciliation against the bank statement and supporting documents before the period is marked closed, catching a $1,200 miscategorized expense that would otherwise have understated profit for the month.

## Maker-checker in QuickBooks Online vs Xero

Maker-checker is a process control rather than a software feature, though tools such as Karbon or a shared close checklist can enforce it by requiring a second sign-off before a task is marked complete. QuickBooks Online and Xero support user permissions that can separate who enters data from who can lock a period.

## Common mistakes

- Letting the same person act as both maker and checker under time pressure, which defeats the purpose of the control since no independent set of eyes reviews the work.
- Giving the checker no real authority to reject or send work back, which turns the review into a formality instead of a genuine check on errors or fraud.
- Applying maker-checker only to some transactions, such as large payments, while skipping it for routine entries, which leaves the exact area where small errors accumulate unreviewed.

## Why it matters

Maker-checker is one of the simplest, lowest-cost internal controls a business can put in place, and its absence is one of the first things a lender, auditor or fraud investigator looks for when something goes wrong. For a small business owner without the staff for a full internal-controls program, splitting who enters a transaction from who reviews it catches errors and discourages fraud before either reaches the financial statements.

## Related terms

- [Two-tier review](https://ledgerbpo.com/glossary/two-tier-review/)
- [Service level agreement](https://ledgerbpo.com/glossary/service-level-agreement/)
- [Suspense account](https://ledgerbpo.com/glossary/suspense-account/)
- [All terms](https://ledgerbpo.com/glossary/)

## How LedgerBPO handles maker-checker

Every close we run follows a maker-checker structure: a dedicated bookkeeper prepares the work, and a second reviewer checks it against source documents before anything is finalized. We call this our two-tier review process.

[A second set of eyes on every file](https://ledgerbpo.com/for-accounting-firms/quality-review/)

Next step

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Source: https://ledgerbpo.com/glossary/maker-checker/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt