Separation of Duties in Small Businesses - Cash Receipts, Cash Disbursements, and Payroll Two-person Office Business Manager Owner/Manager • Record accounts receivable entries • Sign checks • Mail checks • Sign employee contracts • Write checks • Complete deposit slips • Record general ledger entries • Perform interbank transfers • Reconcile bank statements • Distribute payroll • Record credits/debits in accounting records • Reconcile petty cash • Approve payroll • Approve employee time sheets • Receive cash • Process vendor invoices • Disburse petty cash • Authorize purchase orders • Authorize check requests • Authorize invoices for payment Three-person Office Bookkeeper Office Manager Owner/Manager • Record accounts receivable • Process vendor invoices • Sign checks entries • Receive cash • Sign employee contracts • Reconcile petty cash • Mail checks • Complete deposit slips • Write checks • Approve invoices for • Perform interbank transfers • Record general ledger entries payment • Reconcile bank statements • Distribute payroll • Record credits/debits in • Authorize purchase orders accounting records • Authorize employee timesheets • Approve payroll • Disburse petty cash Four-person Office Bookkeeper Clerk Office Manager Owner/Manager • Record accounts • Distribute payroll • Complete deposit • Sign checks receivable entries • Receive cash slips • Sign employee • Reconcile petty • Disburse petty cash • Process vendor contracts cash • Authorize purchase invoices • Approve employee • Write checks orders • Approve payroll timesheets • Record general • Authorize check • Approve invoices • Perform interbank ledger entries requests for pay transfers • Reconcile bank • Mail checks statements • Record credits/debits in accounting records.