AP question

[solomonseyoum]

My small business client would like me to take on the AP function. I realize that the AP function goes all the way to invoice data entry to processing and mailing out checks. My client is located a bit far away and dropping printed checks won't work. My question is can I print, sign, and mail checks? Before I ask my client for check signing authorization, I wanted to make sure if this is an acceptable practice. I appreciate your advice.

 

[raeka]

Generally AP function is limited: enter invoices, raise (print) cheques, get the cheques signed by the manager or director, send the cheques, and reconcile all invoices (paid and unpaid) and report to the manager why there are unpaid invoices and what you (AP) can do to pay the invoices (which involves approval, verification, etc).

Based on internal control principle, it is not acceptable practice to print, sign, and mail cheques by one person only. But since you're dealing with a small business, you can always ask if they're comfortable with the idea that someone outside their company can sign cheques. As a small business owner myself, I wouldn't be comfortable with this.