Who should be responsible for preparing the bank deposit according to best practices?

The best practice for preparing bank deposits is to have an independent person not involved in cash functions oversee this task. This helps enhance the integrity of the financial reporting process and serves as a key internal control. By having someone independent from cash handling duties handle the deposit preparation, it reduces the risk of theft, fraud, and errors. An independent person can objectively ensure the accuracy of the deposit, verify that funds are correctly counted, and properly documented before being sent to the bank.

Other roles, such as accounts payable clerks, cashiers, and accounts receivable clerks, are typically involved in cash handling and transaction processes. Allowing these individuals to also prepare the bank deposit could create opportunities for manipulation or misappropriation of funds, as they may find it easier to conceal discrepancies. Hence, using an independent entity strengthens the organization’s overall fraud prevention measures by maintaining a clear separation of duties.