Signing authority limit
Signing authority limit is the maximum value or scope a person in your business can approve or sign for, such as contracts, purchase orders, invoices or bank payments. It helps control risk, prevents overspending, and makes clear who can commit the company to what.
Keep it written down
Document limits in your finance policy and bank mandates, and mirror them in your accounting and approval workflows. Keep titles, amounts and any need for a second signature consistent everywhere.
Limits are usually set by the owner or board and linked to roles, not to specific people, so they stay clear when staff change. You can make them stricter for higher amounts, particular spend types or long‑term contracts, and require one or two approvals as needed.
Common ways businesses set limits:
- By role or job title (e.g. manager, director, owner).
- By amount per transaction, with tighter rules above certain thresholds.
- By budget or cost centre, tied to what was already approved.
- By type of spend (operational vs. capital, contracts vs. routine expenses).
- Single sign-off up to a level, then dual approval above it.
- Extra checks for new suppliers or non-standard terms.
With us, anyone can handle invoicing completely.Create Invoice
