Should Your Bookkeeper Have Access to Your Bank Account?

Bookkeeping is a vital part of any business. As a growth-focused entity, you should have an accountant that can help guide your bookkeeping needs and keep you on track with the best practices in the industry. Like any other professional or employee in your organisation, the accountant deserves respect and trust.

But what should be the limit for that respect and trust, especially when it touches your business finances? For instance, should your bookkeeper have access to your bank account? The short answer is, it’s a personal choice, so there’s no right or wrong decision.

Let’s face it, though; surrendering your bank details to another party isn’t the easiest decision to make. That’s why we’ve prepared this comprehensive resource to discuss the top factors to consider before giving account access to your bookkeeper. We’ll also look at other options to explore and highlight the importance of your bookkeeper accessing your accounts. So let’s get started!

Should Your Bookkeeper Have Access to Your Bank Account?

As we hinted above, giving a bookkeeper access to your bank account is a personal choice. But before you make that decision, here are some things to think about:

What Is Your Bookkeeper’s Experience Level?

The first thing to consider is whether you’re comfortable handing over control of your financial information to someone who has less experience than yourself. If you’re unsure how much experience they have, it might be worth checking their credentials and references.

How Much Do You Trust Them?

The next step is gauging how much you trust them. You need to feel confident that they won’t use your information inappropriately. That means having an open line of communication between you and your bookkeeper. It also means making sure they understand the terms of service for your bank accounts.

Are They Responsible for Managing Your Accounts?

If you choose to share your banking information with your bookkeeper, you must also consider whether they will be responsible for managing your accounts. That means being able to log into your online banking platform and monitor transactions.

Will They Be Able To Provide You With Financial Reports?

If you want regular reporting of your business finances, you’ll need to provide your bookkeeper with login credentials. And while many accounting software packages allow for remote access, you may find it easier to meet with your bookkeeper regularly to review your financial statements.

Can They Manage Your Payroll, Taxes, and Wages?

Finally, you’ll want to ask yourself if your bookkeeper can manage these critical areas of your business as well. While most accountants specialise in tax preparation and payroll services, they often offer additional support such as bookkeeping, general ledger management, and even payroll processing.

What Other Options Should You Explore If You Don’t Want to Give the Bookkeeper Your Bank Account Login Credentials?

If you’re not comfortable sharing your bank account login credentials with your bookkeeper, there are still other ways to go about it. Here are a few ideas:

Give Your Bookkeeper Read-Only Access to Your Accounts

Giving ‘Read-Only Access’ allows your bookkeeper to view your transaction history but doesn’t require them to have access to your bank account login credentials. That means they can view transaction statements and see images, but can’t complete transactions, move money, or pay bills.

Use Barriers

Several top-tier software programs enable companies to allow their bookkeepers to view financial details without being able to make changes or adjustments. This comes in handy if you only want your bookkeeper to have a level of access to your business finances that you’re comfortable with. 

Share PDF Statements

If you don’t trust your bookkeeper with your bank account details, you have the option of providing them with regular copies of your financial statements in PDF format. That way, they can effortlessly download the information and feed it into the online accounting software or print out a copy for themselves.

Why Give Account Access to Your Bookkeeper?

The benefits of giving your bookkeeper access to your bank account can outweigh the risks, and industry experts generally recommend it. If you’re still sceptical, you may change your mind after discovering what your business stands to gain should your bookkeeper have access to your bank account. Here’s a highlight of the top benefits:

Better Financial Reporting

When you give your bookkeeper access to all of your accounts, they will be able to better prepare reports for you. These reports include balance sheets, income statements, cash flow statements, and profit and loss statements. They also provide valuable insights into how your business is performing.

More Effective Budgeting

Your bookkeeper can help you create a budget and track spending. They can also implement strategies to manage your expenses better, helping you know exactly where your money goes.

Faster Payroll Processing

When you share your bank account login credentials, your bookkeeper can process payroll faster than ever before. They can easily import data from your bank statement and send out invoices to your employees.

Efficient Cash Flow Management

Your bookkeeper can quickly identify any problems in your cash flow management system. By having access to your bank account, they can spot potential issues such as overdrafts or insufficient funds.

Easier Tax Preparation

By sharing your bank account login credentials with your bookkeeper, you can save yourself some time during tax preparation. You no longer need to go back over each transaction one by one to ensure everything is correct. Instead, your bookkeeper can simply log in to your online banking portal and pull up your transactions.

Conclusion: Visory is Your Go-To Bookkeeping Service!

Visory is a top-rated service provider that offers excellent bookkeeping services at competitive prices. Our team of highly trained professionals is ready to take care of all your business-specific bookkeeping needs. We offer a wide range of services, including bookkeeping, reporting & insights, accounts payable & receivable, payroll processing, and taxes.

Our purpose is to help business owners and SMEs realise their growth goals through effective bookkeeping solutions. So don’t get left behind. We invite you to learn more about Visory’s bookkeeping services, so you can take advantage of our expertise today!