Having access as a authorised signatory and paying suppliers on behalf of a client

ClaireS17ClaireS17 New MemberPosts: 16Registered
Hi,

I have been asked by a client I carry out bookkeeping for to start paying their suppliers on their behalf for them as they are busy working 'on site' and don't get time to do it properly/in time.

They want to add me to their bank accounts as an authorised signatory so that I can do this.

I just want to check, am I allowed to do this?

I know it may sound like a silly question to ask but I just want to make sure that this will be ok and not cause me any problems ethically or what not as I do the clients bookkeeping from my office as they don't have one.

Comments

  • NeillawNeillaw New Member RossendalePosts: 242MAAT, AAT Licensed Accountant
    I agree with mrme89 that this isn't a good idea.

    The problem I have with this kind of set up is whose in control of the treasury position, is your client willing to give up all treasury responsibilities to yourself for cash forecasts. Some clients find this easy to say but hard to put into practice.

    You would need to do a risk assessment as to any comebacks from your client as your dealing with their bank account.

    If the client has online banking it may be better to have access to raise the payments but require your client to authorise the payments after you have raised them. This would let the client keep control of his own cash flow and reduce your risk.
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