Check Signing Authority Procedure | CSH105

Check Signing Authority Procedure

To ensure your accounting system’s integrity, no one person or employee in your organization should enter invoices, select payment invoices, print and sign checks.

The Check Signing Authority Procedure outlines “dollar limits” and check signing authority processes to maintain your company’s maximum check safety. The Check Signing Authority Procedure applies to the president and CFO of your company. (6 pages, 712 words)

While a hired accountant, office manager, or accounting clerk may be responsible for entering bills, paying bills, and printing out checks, all printed checks and related documentation should be presented to a second individual for signing. No one person or employee (other than perhaps the owner) should be allowed to enter invoices, select invoices for payment, then print and sign checks. At a minimum, this process requires at least two individuals to ensure the integrity of the accounting system remains intact.

For back-up purposes, it is advisable to have at least three check signers authorized for each checking account. One should be the owner, President or primary signer and the other should be the CFO or secondary check signer. The third should be a back-up signer. The back-up signer should be a trusted individual but not necessarily an employee. It could be a board member or another principle in the business. A back-up signer will ensure continuing operations in case both the primary and secondary signers become incapacitated for any period of time.

Check Signing Authority Responsibilities:

The President is responsible for adding and removing check signing authority.

The CFO (Chief Financial Officer) is responsible for managing the check signing authority process and alerting all individuals and banks of any changes to authority.

Check Signing Authority Procedure Activities

• Authorized Check Signers
• Changing Check Signers
• Authority Levels

Check Signing Authority Procedure Forms

• Check Signing Authority Log Form