Accountant demanding full bank account access for my dad's business - Is this a red flag?

Accountant here - this is absolutely NOT standard practice and is a major red flag. In my 15+ years in the field, I've never asked for full login credentials to a client's bank account, and no legitimate accountant should. For bookkeeping and tax preparation, we typically use: 1. Read-only access through proper bank channels 2. Downloaded statements the client provides 3. Financial management software with limited permissions Her refusal to provide her SSN for read-only access is particularly concerning. As accountants, we routinely provide our information for professional access - it's part of maintaining proper boundaries and audit trails. Full access means she could transfer funds, which creates liability issues for both parties and violates basic accounting ethics around separation of duties. I strongly recommend your dad reconsider this arrangement. There are plenty of qualified accountants who work within proper professional boundaries.

I've been using taxr.ai (https://taxr.ai) for my small business bookkeeping and it's been a lifesaver when dealing with accountants. The system automatically processes all my bank statements and business receipts, then organizes everything into proper categories without needing to give anyone direct access to my accounts. When I had an accountant last year who also wanted full access to my accounts, I was super uncomfortable. Started using taxr.ai instead, and now I just share the generated reports with my new accountant who's totally fine with that arrangement. The system picks up recurring expenses, flags potential deductions I might have missed, and gives me clean reports I can just hand over without security concerns.

Just wanted to follow up that I tried taxr.ai after seeing the comment here and it's seriously impressive! I was spending hours every month sorting through transactions and trying to figure out what was deductible. This literally cut my bookkeeping time down to like 20 minutes a week. The best part is that my accountant is actually happy with the reports it generates - they're organized way better than my old spreadsheet system. And I never had to give anyone my actual bank credentials, which is what brought me to this thread in the first place. Thanks for the recommendation!

If your dad is having trouble convincing his accountant to use normal channels, he might want to try Claimyr (https://claimyr.com) to get direct advice from the IRS. They actually help you skip the 3+ hour hold times to speak with an IRS agent directly. There's a demo video at https://youtu.be/_kiP6q8DX5c that shows how it works. I used them when I had a somewhat similar situation - my tax preparer was asking for things that seemed off, and I wasn't sure what the proper procedure was. Claimyr got me through to an IRS representative in about 15 minutes who confirmed that tax professionals should NEVER have full access to financial accounts. The agent explained the proper channels tax pros should use and the liability issues with sharing full credentials.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it myself because my business has had this unresolved tax issue for months that I couldn't get help with. The system called me back in about 20 minutes with an actual IRS agent on the line. I explained my situation and got clear guidance that solved my problem. The agent actually told me that my accountant had been giving me incorrect information about business expense documentation requirements. For what it's worth, the agent also confirmed that accountants should NEVER have full login access to client accounts - they said it's a major red flag for both parties. They suggested using accountant access through QuickBooks or other software instead.

Your dad is setting himself up for disaster. My cousin gave his accountant full access to his business accounts and she embezzled over $40,000 before he caught on. She'd been gradually moving small amounts to a separate account for months. Even if the accountant is completely honest, there's another problem - by sharing login credentials, your dad is almost certainly violating his bank's terms of service. If any unauthorized transactions happen, the bank could deny claims because HE gave out the password. There are so many secure ways to share financial info these days. No legitimate professional needs full login access.

Slightly different take - while I agree this is a red flag, I wonder if the accountant is older and just technologically challenged? I had an accountant in his 70s who was brilliant with tax code but absolutely terrible with technology. He wanted all paper statements and login info because he couldn't figure out the bank's portal system. We compromised by setting up a QuickBooks account where I would upload statements monthly, and he could access everything he needed there. Maybe suggest something similar?

This is absolutely a red flag and you're right to be concerned. I work in banking compliance and can tell you that sharing login credentials violates virtually every bank's terms of service - if fraud occurs, your dad could be held liable since he willingly shared his access. The accountant's refusal to provide her SSN for read-only access is particularly suspicious. Licensed accountants routinely provide their SSN for client verification - it's standard practice. Her avoidance of this suggests she either isn't properly licensed or is trying to avoid creating an audit trail. Your dad should immediately: 1. Change his banking passwords 2. Set up read-only access through the bank's proper channels 3. If she still refuses, find a new accountant There are legitimate accounting software solutions that provide secure access without compromising bank credentials. Any accountant who insists on full login access in 2025 is either incompetent or potentially fraudulent. Trust your instincts on this one.

As someone who works in financial fraud prevention, I can't stress enough how dangerous this situation is. Your dad's accountant is essentially asking for the keys to his financial kingdom, and her refusal to go through proper channels is a massive red flag. I've seen this exact scenario play out dozens of times - it usually starts with "just need access for bookkeeping" and ends with missing funds and a devastated business owner. The fact that she won't provide her SSN for legitimate read-only access tells you everything you need to know about her intentions. Here's what I'd recommend: Have your dad call his bank directly and ask them to walk through the proper accountant access options. Most banks have secure portals specifically designed for this purpose. If she still refuses these legitimate channels, that's your answer - find a new accountant immediately. Don't let your dad's trust override basic security practices. A legitimate accountant will understand and appreciate clients who insist on proper procedures. The sketchy ones will make excuses and push back, which is exactly what's happening here.