If you have a Small Business Checking account, you know the importance of making sure someone else on staff is able to sign checks. There will be times when you are away from your business and will need someone else to sign checks in your absence. When you set up a Small Business Checking account, you can designate as many people as you like to have signing authority. It is always a good idea to have at least two people on the Small Business Checking account with signing privileges. It is one of the smartest things you can do once you get your Small Business Checking account started.
All that needs to be done in order to have multiple signers on your Small Business Checking account is to bring the person to the bank and have them fill out a short form. Their signature will be kept on file along with yours as the official signers on the account. If someone who is not authorized to write checks does get hold of the checkbook, those checks will be rejected. Your bank will be able to spot a falsified document much easier since they already have the proper signatures.
Giving one of your employees signing power shows your faith in them. This can be a morale boost for an employee who consistently does the right thing. They can also make sure cash is being appropriated properly, freeing you up to do other tasks. Once you add their name to your Small Business Checking account, this will give them access to all of your transactions. This person most likely oversee more of the day to day expenses than you do, since you will be out drumming up new business to keep the doors open. . Your office manager can work on balancing the monthly statement for you. This means you have one less thing to do each month, giving you more time to do what you are best at.
If there is ever a discrepancy with your Small Business Checking account statement, now it will be easier to take care of. The work of balancing the monthly statement will fall to your employee, and they already have access to the account if something is not correct. They can then show you what the problem was, and get it fixed 3easily. This is why having at least two people on your Small Business Checking account is such a good idea.
A benefit from having another set of eyes on your Small Business Checking account is less chance of fraud. Be smart and keep those checks locked up. Do not walk around with a Small Business Checking checkbook where it can be easily stolen. Keep that out of harm’s way. Make sure to also run background and credit checks on staff, especially anyone handling money. Protect your assets. Be smart and know that the person responsible for your business is you. Help yourself by protecting yourself from potential fraud. Having a second name on your business account will accomplish that goal nicely.