Dual signatures and your business checking account
How many signatures does your business account require on checks? One, right? Have you ever considered adding a second signature line to create a dual signature requirement?
Sure, it can seem like a cumbersome process to put in place. Especially when you have hired a specific employee to take care of the finances. Why might a second signature be a good idea?
Dual signatures are just one more way you can internally control and manage the cash flow within your company. It also means two people understand the payment is legitimate. A one-signature requirement means someone could potentially write checks improperly to themselves or another business entity.
A dual signature process doesn’t become a banking requirement; it becomes one implemented within your own business standards and procedures. The internal standards will help ensure your business assets are used only for business purposes.
Not sure you want to implement a two-signature requirement? Consider how you will control the internal factors beyond check signatures. This could include changes to your business process or employee access. Another option is to begin with a dual-signature requirement over a specific amount, such $5,000.
Want to know other ways you can better protect the finances of your business? We’d be happy to discuss additional options with you.