BUSINESS START UP - WORKSHOP - CHEQUE SIGNING

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D.2. Cheque Signing

1. Before the cheque is signed by the authorized signature(s) the cheque requisition must be completed and attached to the relevant invoice/statement etc. The prepared cheque can then be presented for signature together with the cheque requisition form and invoices and the whole history of the payment is together and in one place. If the person signing the cheque is not the person who prepared the cheque, then all the details and the amounts must be checked to ensure correctness thereof, prior to the cheque being signed.

The accountant/bookkeeper should satisfy themselves that these checks are done.

2. Once the cheque has been signed, it should be dispatched and/or delivered to the payee without delay. The invoice/statement should then be marked paid, the date and the cheque # - again this provides an audit trail and makes replies and attending to queries that much less painful.

3. In the instances where there is more than one “partner” in the business, it is advisable that all cheques and/or payments should be signed by all the relevant individuals. In this way no accusations can be made with reference to fraud etc. Prevention is always better than cure.

4. Do not, ever, sign a blank cheque – that is the same as leaving R100 000 (or more) in cash lying around. Don’t do it, you will regret it and you will have no-one but yourself to blame if the money goes missing out of your account!