Elliot & Warren CPAs Charlotte, NC Accounting Firms, Tax Preparers, Financial Consultants

Separation of Duties in Small Businesses - Cash Receipts, Cash Disbursements, and Payroll

by Robert W. "Bo" Elliot, Jr.,CPA
Partner, Elliot & Warren, PLLC

Two Person Office

Business Manager	CEO or Owner/Manager
Record accounts receivable entries Mail checks Write checks Record general ledger entries Reconcile bank statements Record credits/debits in accounting records Approve payroll Receive cash Disburse petty cash Authorize purchase orders Authorize check requests Authorize invoices for payment	Sign checks Sign employee contracts Complete deposit slips Perform interbank transfers Distribute payroll Reconcile petty cash Approve employee time sheets Process vendor invoices Receive, open, and review bank statements

Three Person Office

Bookkeeper	Office Manager	CEO or Owner/Manager
Record accounts receivable entries Reconcile petty cash Write checks Record general ledger entries Reconcile bank statements Record credits/debits in accounting records	Process vendor invoices Receive cash Mail checks Approve invoices for payment Distribute payroll Authorize purchase orders Authorize employee time sheets Approve payroll Disburse petty cash	Sign checks Sign employee contracts Complete deposit slips Perform interbank transfers Receive, open, and review bank statements

Four Person Office

Bookkeeper	Clerk	Office Manager	CEO or Owner/Manager
Record accounts receivable entries Reconcile petty cash Write checks Record general ledger entries Reconcile bank statements Record credits/debits in accounting records	Distribute payroll Receive cash Disburse petty cash Authorize purchase orders Authorize check requests Mail checks	Complete deposit slips Process vendor invoices Approve payroll Approve invoices for pay	Sign checks Sign employee contracts Approve employee time sheets Perform interbank transfers Receive, open, and review bank statements

Certified Public Accountants
Professional Limited Liability Company