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Delegating Signing Authority to Consultants

Brian Califano, CPA's Profile

I am a partner at AcceleratingCFO and as part of regular consulting duties I assume the ability to write and authorize checks to my client's vendors. A client's HR head recently balked at giving me signing authority because I am not an employee and it is against Labor laws to do so. (I was not given the rule to review.) Does anyone else here know of any rule or regulation that would prohibit a consultant from authorizing payments? Thanks in advance!


Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

You may need a lawyer for that answer.
The HR person may be thinking of E&O/professional liability coverage-if you are not an employee and commit a fraud, your non-employee status may exclude them from protection under their policy. So it may turn around and become a request for you to prove you have adequate professional liability coverage.

Brian Califano, CPA
Title: Founder & Managing Partner
Company: AcceleratingCFO
(Founder & Managing Partner, AcceleratingCFO) |

Interesting ... didn't think of it from that angle. Thanks!

Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

As an "outsourced" CFO, I normally have in my contracts that I can't sign or establish a fiduciary responsibility.

But, when the client compensates, than the contract is explicit along with the requirement that I am placed under their D&O policy.

It's all about protecting yourself.


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