Checks that need to be done before sending the product or payment

Business is often a creative activity that society needs so much that it is ready to pay for it. But sometimes, especially in a growing business, the processes are not yet established and some of them simply fall out like puzzles from the overall picture. Before sending a significant payment or item, the project team must perform several key checks to minimize risks. Here are the main ones:





 

1. Document verification :

   • Availability of original documents : confirm the availability of all necessary original contracts, invoices or other legal documents that confirm the legality of the transaction.
   • Correctness of registration : check whether the documents meet the requirements of the company and the law (all signatures, seals, terms must be correct).
   • Verification of counterparties : make sure that the counterparty is not on sanction lists or in another risky status (through KYC or AML services).

2. Verification of bank details :

   • Make sure that the details for which the payment is planned to be made match those specified in the contracts.
   • Conduct additional verification of details through official sources or directly with the counterparty.

3. Verification of agreements :

   • Internal approval : obtain all necessary approvals and signatures from the responsible persons of the company (financial department, lawyers, management).
   • Budget Compliance : Verify that the transaction is within the planned budget and that all internal approvals have been obtained for the payment.

4. Verification of the amount :

   • Reconciliation of the amount : to make sure that the amount of the payment is accurate and corresponds to the contractual obligations.
   • Exchange rate risks : if the payment is made in a foreign currency, check the relevance of the exchange rate and take into account possible commissions.

5. Risk assessment and insurance :

   • Determine whether to use payment insurance mechanisms or additional guarantees (eg letters of credit, pledges, sureties, etc.).

6. Compliance with deadlines :

   • Check whether the transaction is carried out within the terms specified in the contract.

All inspections must be assigned responsible persons, and the inspections themselves must be documented for reporting and future audits. In fact, this is one of the most responsible processes in business, which should be treated with great responsibility.

Templates that may be useful:
- Power of attorney to receive and submit documents in banks of Ukraine;
- Power of attorney from the FOP (broad: representation in bodies, during inspections, opening and disposal of accounts) ;
-Demand to return the amount of advance payment ;
- Regulations on accounting policy and organization of accounting ;
- Disclaimer: "Liability for damages in connection with the violation of tax legislation" ;
- Sanction clause;
- Offer account for a non-resident counterparty (legal services) ;
- Offer account for a non-resident counterparty (software development );
- Offer account for a non-resident counterparty ( consulting services) ;
- Commercial invoice for a non-resident counterparty ;
- Proforma invoice for goods ;