An authorized signatory is an individual legally empowered to sign documents on behalf of a company or organization. In the context of an invoice, this person is typically responsible for approving the invoice’s contents and authorizing its issuance.
Importance of an Authorized Signatory
Legal Validity: The signature of an authorized signatory lends legal validity to the invoice, confirming that the goods or services have been provided and the amount charged is accurate.
Accountability: It establishes accountability for the invoice, making the signatory responsible for its contents.
Authorization: It signifies the company’s approval of the invoice and its readiness for payment.
Who Can Be an Authorized Signatory?
The designation of an authorized signatory varies from company to company. Typically, it’s a position held by:
High-level executives: CEO, CFO, COO
Finance department heads: Finance Director, Accounts Payable/Receivable Manager
Sales or operations managers (depending on company structure and internal controls)
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