As an accountant who deals with other people’s money and number crunching, it is crucial to recognize the risk of mistakes. That’s why it’s important to take into consideration accountant professional liability. After all, it’s much better to watch for the signs before a costly legal dispute breaks out.
The Service You Provide
What you want to avoid greatly depends on what kind of service you provide. Consider the service you are currently providing:
Some firms may provide a combination of these, where others specialize in one or the other.
The Different Kinds of Potential Threats
Those providing audits and assurance should stay aware of the details in the records. Sometimes there are honest bookkeeping mistakes that come up, but other times there could be some intentional misrepresentation that auditors must be keen on. If these mistakes slip through the cracks, the accountant could be held responsible.
The tax code undergoes frequent changes, so it’s vital to stay on top of the government’s new rules and regulations. There’s a danger in working under the assumption that accountants are solely there for the benefit of the client.
As a consultant, you should keep in mind the severity of a claim and how involved you are beyond just consultation. Securing your clients with an accountant professional liability policy can go a long way in ensuring the utmost protection is being taken against potential legal threats.