Discussion:Writing checks on behalf of client

I'm not sure if I am comfortable being a signer on his account, I would much rather just prepare the checks and have him sign them each month.

Does anyone have any thoughts or experiences in this area?

Thanks

Pete

The question is does having signature authority on a bank account constitute control if transactions are only initiated with the business owner's permission and this is documented in the engagement letter?

Whether your client wants a scapegoat or someone to dump his/her headaches on, not thanks I will skip both of those headaches.

Michael

Sasha

I have said no to check signing. They have suggested we get a signature stamp...their signature...and checks are "signed" that way. I feel this still gives me unsupervised/uncontrolled access to their checking account. As has been suggested above, I do not want uncontrolled access to their checking account.

Anybody think I am being difficult? Anybody agree with me? Anybody have a good reason to do the signature stamp?

Thanks.

Our society has turned from a agricultural/manufacturing society with large families to a largely service/information bases society with much smaller family sizes. Accordingly, many seniors (who are very much targets of thieves) need someone to manage this for them because they no longer have the family to help them. I understand the hesitancy of the IRS but I would think the number of seniors who need help that are defrauded by kids or predator thieves would be higher than professionals.

However, I don't personally see that the IRS will differentiate between the manual signing of your name (as a signer on the account) and you having control over the use of a stamp of the client's signature. In both events, you have the ability to misappropriate client funds by signing a check without client consent--what does the IRS care whether you used your personal signature on file at the bank or the client's stamped signature to commit a crime?

Here's an idea: You do every bit of what the client wants you to do including opening the client's bills, preparing checks, and then you take them to the client and let them sign them or stamp them. I think the issue the client is trying to avoid is the administrata.

If they cannot understand 'The IRS will not let me' and consider it that you are being difficult...they might need to go.

BrockEA

You'll be alone, very alone.

BrockEA

It is actually a new corporate client that wants us to do bookkeeping, pay bills, monthly financials, etc... His former CPA was a signor on his bank accounts, signed checks, paychecks, payroll tax forms, tax deposits, etc... She (and her staff) would receive bills in their office, approve them and pay them. No PO system. The owner liked it..."I hate that stuff and it just happened. I did not have to mess with it." So especially relative to that it looked like I am being difficult.

But I did have a nice chat with him. Basically told him while I agree he does not need to be doing some of this, he needs to know what is going on. Assuming the former CPA did everything correctly, he still needs to know how he is doing financially, what is profitable, what is not, etc... Then, I did see where the former group double/triple paid some invoices and made some tax payments late and buried the penalties....you always have to wonder why a payment to US Treasury is posted to repairs & maintenance. After seeing that, he agreed he needs to be more aware of what was going on.

I don't know about the EFTPS legality or violation of any rules, but I certainly would NOT be involved with any gate keeping for any client deposits...writing checks or controlling EFTPS.

I am not sure whether the IRS would consider your performing EFTPS as evidence you are a responsible person. Also what happens if the client takes back control of his EFTPS and forgets....client: "I don't know IRS, Charlie Accountant was supposed to make the deposits but quit".

I hold clients' hands enough....if they want to force their administration on me as well, I think I would just say no and if they object I would send them down the road.

BrockEA