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Should the CFO be a bank signatory?

Shiv Hiremath's Profile

Who should be bank signatory? Should CFO be part of joint signatory or exclude himself from signing?

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

The CFO imho should be a signatory, along with others.

Proper controls will go along way to the prevention of fraud.

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

If you are asking if the CFO HAS to be one of the signatories, the answer is it depends on your organizational structure/size. For smaller companies who do not have the "managerial staffing depth", yes. For bigger companies who have the managerial depth (ie, EVPs, SVPs, etc), you can assign/structure signatories through a variety of ways.....transaction type, amount, etc.

My opinion is that if you can give your executives the "title" or "position", you should also be able to trust their judgement.

Ross Anderson, CPA, MBA
Title: Controller
Company: TFS Capital
(Controller, TFS Capital) |

This depends on the size of the check and the size of the organization.The CFO should be a signatory regardless. In a large organization a Treasurer can sign most checks, but large checks should be co-signed by the CFO and/or maybe even the CEO. Small organizations, the CFO may be the only one frequently available to sign, although it helps if its someone that works closely with the CFO that signs checks or at least overlooks what is coming in and out of the bank.

Mark Emerson
Title: General Manager
Company: gothamCulture
(General Manager, gothamCulture) |

We use online banking with two-step authority, so either I or the executive initiates the transaction and the other has to approve. For paper checks, I have signature authority, but our processes clearly state that I submit them to the executive for signing with any exceptions documented (and in practice, I simply decline to sign the checks). Add to this, the paper bank statements are reviewed monthly by the executive and myself. I've instituted these processes at every company I have managed the finances for and have never had an issue. Echoing Wayne and Emerson, the trust has to be there but so do the controls.

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