Do Bookkeepers Have Access To Bank Accounts?
- Cost Construction Accounting
- Jun 12, 2023
- 5 min read
Updated: 3 hours ago
If you run a construction business - whether you're a general contractor juggling multiple projects or a subcontractor trying to keep cash flowing between pay apps, you've probably asked yourself: how much access should I actually give my bookkeeper? It's one of the most common questions we hear from construction owners, and for good reason. You need your bookkeeper to do their job efficiently, but you also can't afford to leave your accounts exposed to risk.
The short answer? Your bookkeeper needs some access, but not full access. And in construction, where you may be managing separate bank accounts for different jobs, draws, or retainage, getting this right matters even more. Let's break it down.
What Do Bookkeepers Actually Do?
To answer this question, it's crucial to first understand what bookkeepers do. Bookkeepers are professionals who manage your financial data:
Keep track of transactions
Match transactions with your books
Verify and categorize transactions
Keep you updated about your financial position
Basically, the bookkeepers keep a close eye on how much money you bring in and how much money you spend. They do this to make sure your financial data is organized, up-to-date, and accurate.
Do Bookkeepers Have Access to Bank Accounts?
Yes - but it should be read-only or view-only access in almost every case. A bookkeeper does not need the ability to initiate wire transfers, move money, or approve payments. What they do need is the ability to see transactions so they can reconcile your accounts and keep your books up to date.
Most major banks allow you to create a secondary user with view-only permissions. This gives your bookkeeper the access they need to do their job without giving them the keys to move your money. If your bank doesn't support this feature, sharing monthly PDF statements works as a secure alternative.
In construction, this is especially important if you maintain separate bank accounts. For example, a general operating account, a payroll account, or a dedicated account tied to a specific job or AIA draw schedule. Your bookkeeper may need view access to all of these, but the same read-only rule applies across the board.
Why Give Account Access to Your Bookkeeper?
So, why should you grant account access to your bookkeeper? Here are some compelling reasons:
Better Financial Reporting: Bookkeepers with proper access offer better financial reporting. They can provide accurate reports. These reports are also up-to-date.
More Effective Budgeting: Understanding your financial situation helps with budgeting. A bookkeeper can help you budget effectively with this clarity.
Faster Payroll Processing: Necessary payroll access enables more efficient processing.
Efficient Cash Flow Management: Access also helps with cash flow management. A bookkeeper can ensure healthy cash flow with the right access.
Easier Tax Preparation: Tax preparation is easier with full access to your financial information. It simplifies the process significantly for your bookkeeper.
Information Bookkeepers Need from Contractors
Let's explore what information bookkeepers typically need from contractors:
Invoices and receipts: Whether you've billed a client for a completed phase or paid a supplier for materials, these documents are the foundation of your bookkeeping. Your bookkeeper needs them to track job costs and keep accounts payable and receivable accurate.
Bank statements: Critical for reconciling accounts each month. Even with read-only bank access, having PDF statements as a backup ensures nothing falls through the cracks.
Payroll information: If your bookkeeper handles payroll, they'll need hours worked, pay rates, any overtime, and employee classifications. Misclassifying workers is a costly mistake in construction, and your bookkeeper can help you stay compliant.
Job cost data: Estimates, change orders, subcontractor agreements, and purchase orders all tie back to job costing. This is what allows your bookkeeper to track actual vs. budgeted costs by project.
Tax information: Your Employer Identification Number (EIN), sales tax ID, and any relevant contractor licenses or insurance certificates are important for compliance and year-end filings.
How to Provide “Secured” Bank Account Access to Your Bookkeeper
You don't need to grant full account access. There are alternatives:
Give Read-Only Access: Many banks offer the option to create a secondary user with view-only access. They can see transactions but can't initiate them.
Use Software with Limited Access Capabilities: Some accounting software lets you access accounting limited. Your accountant can view some of your bank information, but not all of it.
Share PDF Statements: If your bank doesn't offer a view-only option, you can download your bank statements as PDF
These alternatives have many benefits:
Easy Access: Your bookkeeper can easily access bank statement data.
Reduced Errors: They can download data. This saves time and reduces mistakes.
Saves Time and Money: This access can save time, effort, and money.
Extra Layer of Security: Bookkeepers can monitor your accounts. They can catch misappropriations or mistakes.
How CCA Handles Access to Your Accounts
Construction Cost Accounting (CCA) values quality and confidentiality. We build trustworthy relationships with contractors. We understand your unique financial needs and business operations.
They know the specific needs of the construction industry. To balance our need for access with your security and privacy, we primarily use two methods: read-only access to your bank accounts and shared PDF statements.
Read-Only Access
Read-only access allows our bookkeepers to view your transactions and reconcile your accounts without having the ability to make changes or move money around. This approach is a secure way to provide us with the access we need to do our job effectively without giving us full control over your accounts.
Sharing PDF Statements
If read-only access is not available or suitable, we recommend sharing PDF statements. You can download these from your online bank account and share them with us. So, we can keep your books up-to-date without having direct access to your accounts.
We assure you that we treat your financial information confidentially and professionally, no matter the access method. When you share sensitive information with us, you are putting your trust in us, and we take that trust very seriously.
Conclusion
Giving your bookkeeper the right level of bank access is about finding a balance between efficiency and security. View-only or read-only access is almost always sufficient - and it protects you while empowering your bookkeeper to do great work. In construction, where your financial picture is tied to dozens of transactions per project, having a bookkeeper with clean, controlled access to your accounts isn't just helpful. It's essential.
At Construction Cost Accounting, our construction bookkeeping services are built to give you accurate, professionally managed books without compromising your security. Ready to get started? Schedule a free 30-minute consultation with our team today.
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