Accounting & Bookkeeping & Small Business Forum

[VirginiaM]

If a client wants you to take care of paying their payables and writing checks for payroll, isn't that okay to do because the business owner still needs to sign the checks? There is another post on here somewhere that says that making payments for a client makes you liable for anything that doesn't get paid or has errors, etc.

However, I would think that since the business owner has to see the checks to sign them, in effect approving them, this should relieve you of any liability that could possibly arise. I don't have any clients right now but this may come up at some point during my marketing process. I would appreciate your input on this!

[Richard Noot]

VirginiaM wrote: If a client wants you to take care of paying their payables and writing checks for payroll, isn't that okay to do because the business owner still needs to sign the checks? There is another post on here somewhere that says that making payments for a client makes you liable for anything that doesn't get paid or has errors, etc.

However, I would think that since the business owner has to see the checks to sign them, in effect approving them, this should relieve you of any liability that could possibly arise. I don't have any clients right now but this may come up at some point during my marketing process. I would appreciate your input on this!

I PERSONALLY DO NOT HANDLE ANY CHECK WRITING FOR CLIENTS FOR THE SIMPLE REASON IT IS TIME CONSUMING AND I DO NOT WANT THE RESPONSIBILITY OF SAFEGUARDING BLANK CHECKS AS WELL AS THE NUISANCE OF DELIVERY TO THE BUSINESS OWNER. IF YOU DO DECIDE TO HANDLE CHECK WRITING, I WOULD REQUIRE THAT THE BUSINESS OWNER PROVIDES A WRITTEN AUTHORIZATION OF EXACTLY WHAT CHECKS ARE TO BE ISSUED.

[Ahshucks]

We are a service business, and should be doing all we can to improve our client's chances of success. To say, we can't do that is suggesting that the client should be doing the bookkeeping. Something we talked him/her out of in the first place.

By printing checks, you're only processing paper that doesn't become legal tender until signed. Match the stub and staple to the unpaid file that you have retained to return to the owner clipped to the back of the check for his/her review or signature. Attach a check register to the top of the stack. Keep them in alphabetical order for easy pulling and filing. A receptionist or gal Friday can take care of the filing.

Either an A/P paid file by vendor name, or keep them in the monthly folder for filing. Payroll should be handled more discretely of course.

[Richard Noot]

Ahshucks wrote: We are a service business, and should be doing all we can to improve our client's chances of success. To say, we can't do that is suggesting that the client should be doing the bookkeeping. Something we talked him/her out of in the first place.

By printing checks, you're only processing paper that doesn't become legal tender until signed. Match the stub and staple to the unpaid file that you have retained to return to the owner clipped to the back of the check for his/her review or signature. Attach a check register to the top of the stack. Keep them in alphabetical order for easy pulling and filing. A receptionist or gal Friday can take care of the filing.

Either an A/P paid file by vendor name, or keep them in the monthly folder for filing. Payroll should be handled more discretely of course. Sorry I am still sticking to my post. I do not know of any thoughfull business that is going to hire a firm to do their checkwriting. First of all the costs are to high compared to what they can get buy hiring some high school student on a part time business. Secondly the risk to the contractor is to great. I do not know of any firm that can absorb a $5000.00 fine per incident if the payroll is not properly completed.

[dp1903]

Quote: Sorry I am still sticking to my post. I do not know of any thoughfull business that is going to hire a firm to do their checkwriting.

Well, almost all the CPA offices in my city of 100,000 do payroll and write payroll checks for at least some of their clients. I think this practice is widespread. Who else knows how to compute the correct FICA, withholding taxes, etc. but someone who knows bookkeeping or accounting? Most business owners don't know how to nor want to spend the time or expense of having to hire someone just for payroll. Many offices charge a flat rate weekly or per pay period, plus a fee per check. Check this out:

https://www.paycycle.com/external/home.jsp

[Richard Noot]

dp1903 wrote: Quote: Sorry I am still sticking to my post. I do not know of any thoughfull business that is going to hire a firm to do their checkwriting.

Well, almost all the CPA offices in my city of 100,000 do payroll and write payroll checks for at least some of their clients. I think this practice is widespread. Who else knows how to compute the correct FICA, withholding taxes, etc. but someone who knows bookkeeping or accounting? Most business owners don't know how to nor want to spend the time or expense of having to hire someone just for payroll. Many offices charge a flat rate weekly or per pay period, plus a fee per check. Check this out:

https://www.paycycle.com/external/home.jsp

Iam not sure of the point you are trying to make by referencing the paycycle website. Paycycle does NOT write checks for their clients.

[dp1903]

The point is Paycycle is used by CPA offices as well as self-employed bookkeeping/accounting entrepreneurs to write checks for their clients. It gives you the capability to "print checks or make direct deposits".

If being sued for errors is a concern I would suggest taking out "errors and omissions" insurance or consult with your insurance agent for coverage for such an event.