Newspaper article The Daily Mercury (Mackay, Australia)

Monitor Payments

Newspaper article The Daily Mercury (Mackay, Australia)

Monitor Payments

Article excerpt

MANAGING payments made from a business is one key element to ensuring its success.

Bank accounts for businesses are generally set up such that all directors or owners, and perhaps even some key staff, are 'authorised signatories'.

Few go that step further to consider if contractual limits should be set on how much an individual is able to pay out or transfer from the business without approval from the others.

Even if you have honest partners, people make mistakes.

Accordingly, setting contractual limits on how much authority individuals have to sign cheques and make electronic transfers over a certain amount operates as a good check and balance.

You may decide to contractually agree that all cheques or electronic transfers over a certain amount are to be co-signed or approved by another person.

However, this does not necessarily stop a rogue partner from being able to bend the rules.

For example, I could make 20 transfers of $4000 each without having to get co-approval as individual payment amounts are under $5000 each. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.