Who Should Be Allowed to Spend Money or Give Refunds in My Business?

By Bill Stilwell · Last reviewed October 17, 2026

The short answer

Write down who can spend business money, who can give refunds or credits, and the dollar limit for each person. Anything over the limit needs approval from an owner or a named manager. A simple one-page chart stops mistakes and fraud, and it lets staff fix small customer problems on the spot without waiting.

What this means

10.6.1 Spending authority is who can commit business money and how much. It covers card purchases, ordering supplies, signing up for software, hiring a subcontractor, and approving bills.

10.6.2 Refund authority is who can give money back or reduce what a customer owes. That includes refunds, credits, discounts after the sale, and waived fees.

Made-up example: Tall Pines Tree Service writes one chart. Crew leads can spend up to $200 per job on supplies with the company card. The office manager can approve bills up to $1,500 and give refunds or credits up to $150. Anything bigger goes to an owner. When a customer called upset about a missed stump, the office manager gave a $75 credit on the spot and scheduled a return visit. No waiting for the owner to get off a roof.

Why it matters

Unclear limits lead to surprise bills and arguments after the money is gone.
Fraud is easier when anyone can spend or refund without a check (see 10.6.8 Separation of Duties).
Refund fraud is real. A refund sent to the wrong card or account is hard to get back.
Slow refunds frustrate customers. If only the owner can fix things, small problems wait and grow.
Tax records need to be right. Refunds and credits change your income, so they must be recorded.

Who this applies to

Any business where more than one person touches money. A solo owner should still write limits for any bookkeeper, assistant, or family member who helps.

How to do it

List every way money leaves the business: cards, bill payments, payment apps, payroll, and refunds.
List the people who handle each one.
Set a dollar limit for each person and each type: per purchase, per day, or per month.
Set refund and credit limits separately from spending limits.
Name who approves anything over a limit, and a backup approver.
Require refunds to go back to the original payment method when possible (see 10.7.8 Refunds).
Require a reason for every refund and credit, recorded on the invoice or customer record.
Use the limits built into your tools. Many business cards, payment processors, and bookkeeping systems let you set user roles and limits.
Put the chart in writing and have each person sign or acknowledge it.
Review it every year or when roles change.

What proof to keep

The signed spending and refund authority chart
Screenshots of user roles and limits in your card, bank, and payment tools
Approval notes for anything over a limit
A log of refunds and credits with reasons

Common mistakes

Limits only in the owner’s head.
Giving everyone full admin access to the payment processor.
No refund limit, so anyone can refund any amount.
Refunding to a different card or to cash because the customer asked.
Never updating the chart after someone leaves or changes jobs (see 11.7.7 Removing Access When People Leave).

When to get help from a pro

A certified public accountant (CPA) or bookkeeper can help set limits that fit your size. An attorney can check that the chart lines up with your operating agreement or bylaws. Questions to ask:

What spending limits make sense for a business my size?
How should refunds and credits be recorded in my books?
Does my operating agreement already say who can spend money or sign contracts?

Bill’s note

[Bill: add a short note. For example, how giving front-line staff a small refund limit helped a client solve problems before they turned into bad reviews, or how you set limits for SiteSmarty.]

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: the spending and refund limits I set and who approves above them]
[What it cost and how long it took:]
[What surprised me or what I’d do differently:]
[Screenshot or photo to add, with private info blurred: the authority chart and the user roles in the payment processor]
[Result so far:]

Questions people ask

Who should approve purchases in a small business? An owner, or a named manager for amounts under a set limit. Write it down.

Should employees be allowed to give refunds? Yes, up to a small limit you set, with a reason recorded. Bigger refunds go to an owner.

How do I pick a refund limit? Start with what it costs to fix a typical small problem in your business. Raise or lower it after you see how it’s used.

What should a spending policy include? Who can spend, how much, on what, who approves above the limit, and how purchases are recorded.

Audit check

Line	Question	Pass looks like	Fail looks like	Evidence to collect
10.6.1 Spending authority	Is there a written chart showing who can spend business money and up to what amount?	Signed chart. Limits set in card and bank tools. Approvals recorded above limits.	No written limits. Shared cards with no caps. Surprise purchases.	Signed chart, card and bank user settings, sample approvals
10.6.2 Refund authority	Is there a written limit on who can give refunds or credits, with a reason recorded for each?	Refund limits by person. Refunds to the original payment method. Reasons logged.	Anyone can refund any amount. Refunds to other cards or cash. No reasons.	Refund log, processor user roles, three sample refunds with notes

Where this fits

Do this first: 10.5.8 Financial Reports, 10.4.5 Business Credit Card

Do this next: 10.6.3 Vendor Approval and Bank-Change Verification

Sources

Small Business Administration, "Manage your finances" (checked October 17, 2026)
Google Business Profile Help, "Tips to improve your local ranking on Google" (checked October 17, 2026)
IRS, "What kind of records should I keep" (checked October 17, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.