I have a new client asking me to make payments from their bank account using their login details. I'm not really comfortably with this and for now I will ask them to log in to the account and also to sign paperwork to approve payments.
It'd be really great to know what experience others have had on managing this and any advice on offer. I think also it would be wise to put something in my letter of engagement to limit my liability so if anyone has any example wording, I'd be really grateful.
If they want you to make payments from their bank account, insist they set you up with your own log-in (and make sure only you know the password).
In some cases, clients will try to avoid doing this in order to save money if the bank charges for additional users - but you need to convince them that it's for their own safety and peace of mind, as well as yours. Explain it to them along the lines of: "The bank will have an audit trail, so if anything untoward appears on the bank account, it will be possible for the bank to identify who was responsible - which won't be possible if more than one person uses the same log-in*.
* In fact it might be to some extent, if the bank records the originating IP address of any accesses (assuming you're logging in from your own home or office, rather than the client's) - but that's not a safety net to rely on.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Agree with the others and as an ex Bank bod - definitely get your own login and get yourself on their Bank mandate, with a restriction (eg you can only make payments up to £xx) - this is for your own safety as well as theirs!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I can see now that it makes complete sense to have a separate log-in. They are just about to change their bank account so an apt time to request they give me a separate login and also put restrictions and procedures in place for payments.
You might want to check how this effects your liability insurance. I'm pretty sure that having access to a clients bank account counts as handling client money and this would possibly therefore effect your liability insurance premium, for that reason I have avoided having access to a client bank accounts, so far anyway.
I certainly wouldn't let them give me their login details because, if they are "careless" with that information, then it is more likely that the finger will be pointing at you as clients never make mistakes!!!!! with your own login though, kept very safe of course, then the bank would be able to identify the source of the "carelessness".
As Joanne said, it's for your own safety as well as their.
If you have a professional body backing you up you need to check with them what you are allowed to do in this situation. It could affect your practice licence and to my knowledge it is frowned upon. Even with your own login details it would be difficult to defend a breach of security. My firm absolutely refuses to do this.
intersting discussion. I have 1 client who I have access to the bank account but we don't make direct payments I am a joint signatory on the checques - must have 2 signatures. I also count and bank petty cash.
Another wants me to have a login to the account - I don;t think its to make payments more to be able to refresh Xero bank feed and check status of invoice payments.
Am going to check with prof body and PI insurance today if this is allowed.
Just to give you a quick update, I have since spoken to the client and asked for a separate login as it would provide protection and reassurance for everyone concerned. They can see the sense in this and have no problem giving me a separate login for their new bank account. While they are waiting to set this up the new account they will continue to manage their own payments.
I'm going to speak to my insurers tomorrow as well to put my mind at rest in this regards.
Phew, a real weight off my mind so thanks again for all the good advice.
