Summary: This article will be giving a basic explanation of electronic signatures and why different check signatures are needed and why a management company would choose to have more than one check signature.
In general, check signatures are needed to authorize the check and approve the payment. Electronic Signatures are used to expedite the AP process and remove manual procedures.
Criteria set up in: Association> Settings> A/P Payments
- All Checks: All checks will automatically be signed by an electronic signature no matter the amount of the check.
- Checks Under Signature Approval Threshold Only: Only checks under the threshold will be automatically printed with a signature, all above the threshold will stop at the check signer to be signed manually.
Signature Threshold: The amount over which checks will look for the Signature Approval Step. Checks over a certain amount may require signature authorization by the check signer. This amount is set in Association > Settings > A/P Payments
Board Approval Threshold: Similar to the Signature Threshold, Associations can require board approval on checks over a certain threshold via Association Settings as well as on the approval section of service contracts.
Settings > Check Signatures:
Why would a management company need to have more than one signature on file? It is common to have 2 - 5 signatures but we have seen a management company have as many as 212.
Why do they require multiple check signatures to be uploaded into the Vantaca system? There are 3 different signature types to choose from when uploading a new signature:
- Default: Default signatures are the management company's signature, possibly the president of the company. Default signatures are most common because the management company is hired to handle the finances of the HOA. All management companies will have a default signature.
- Company: Regional Offices and other divisions of the management company may want to/ require different signatures from that of the default. Company signatures are common after the acquisition of another management company. If the management company wishes to keep the branding of the acquisition company an alternative company signature may be used.
- Association: It is a possibility that different accounts need different signatures. Association signatures are not recommended as a best practice but may be used when a board is hesitant to give up signing power to the management company. Association signatures are commonly belonging to board presidents or treasurers. Board presidents can change often which is why this practice is not recommended.
As a best practice, it is better to have fewer signatures in Vantaca in order to optimize efficiency and automation. Having too many check signatures can become problematic when they are tied to positions with frequent turnover, for example, board presidents or association managers. You will have to manually change the signature every time there is turnover. Having to frequently update information is simply inefficient and defeats the purpose of automation within Vantaca. Convincing a board to use a company signature is our suggested best practice.