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Accounting Practices

by CarlLakeside, Creator

  • Created: May 26, 2010, 5:39 pm
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8 comments

Hello, I have a small business of 11 people and we're at that point where we need an accountant. I have a question regarding payment procedures for the accountants. If you hire an accountant, do you give the accountants the right to pay people (writing checks, paypal, etc)?

The reason I ask is because I have a friend that owns a larger company (of about 40) and he told me I should not give the accountants the right to do this. Anytime the company needs to issue funds, he has to authorize everything.

What is common practice? Thank you.

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Accounting | Window Shopper | 12/2/2012 - 11:54 pm

for small business it's not good to let accountant have right to pay.
SAS - Solution Leader in Accounting services, Bookkeeping, Auditing, Outsourcing & Tax consultancy
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Accounting | Window Shopper | 12/2/2012 - 11:55 pm

for small business it's not good to let accountant have right to pay.
SAS - Solution Leader in Accounting services, Bookkeeping, Auditing, Outsourcing & Tax consultancy

francba1 | Creator | 5/28/2010 - 10:41 am

 It is important that the small business owner be in total control .  Too many people have been burned by trusting the wrong employee's. 

dgoldie | Creator | 5/27/2010 - 12:35 pm

You should absolutely not give your accountant the authority to write checks make payments on your behalf.
Professional Web Site: http://www.dangoldie.com

mcummings | Performer | 5/27/2010 - 10:38 am

Hi there,   As an accountant, I have created checks for clients, but the clients ALWAYS sign the checks.  I do not ever take on the responsibility of being a check signer, nor do I authorize electronic payments with authorization from the client.  Hope this helps!  Melena

teamextension | Contributor | 5/26/2010 - 10:32 pm

For us, everything is authorized as well.
Professional Web Site: http://www.teamextension.com

CarlLakeside | Creator | 6/2/2010 - 1:55 am

Wow, thanks for all the replies. This helps me quite a bit. I thought once we hire an accountant, I won't have to deal with the finances at all aside from looking at the balances and high level reports.

BizResearcher | Window Shopper | 6/2/2010 - 11:43 am

As a business owner you need to be involved with all aspects of your business, including the finances. An accountant can keep you on track and make sure bills are prepared for payment in a timely manner and prepare tax returns and monthly and annual financial statements, but you need to keep a close eye on your finances to be certain you are making wise business decisions in every area.