Atlanta Professional Liability Insurance Provides Peace of Mind
During the busy tax season many accountants realize they are quite possibly prone to making more errors due to their heavy workload. That can also mean increased exposure to liability claims resulting in litigation from clients. But even in the off-season, providing the same services can still result in errors and exposure to costly claims.
With lots of pressure coming from demanding clients, tight deadlines, and the exhaustion that may follow, the list of potential concerns goes on and on. Even with the proper best practices being adhered to, and risk management solutions in place, accountants should protect themselves with Atlanta Professional Liability Insurance.
Do your part to reduce exposures
Regardless the size of your firm you need to do everything in your power to reduce the risk of lawsuits occurring. While having solid relationships with many of your clients is a great advantage, most still won’t hesitate to take legal recourse if they feel the services provided failed to meet their expectations.
Keep in mind that defense costs alone can be costly, and this includes even in the most frivolous cases. So having a quality professional liability policy in place can be both cost-effective and help protect your business and its financial security.
Claims for failure to detect fraud, embezzlement and corporate impropriety, are all part of recent litigation trends that are noteworthy. While a good many of these claims include allegations against auditors, there are times when they are also asserted against tax preparers.
Clients will assume that their accountants and tax preparers can be held liable for failure to detect fraud, in which case the need to defend against claims related to the accountants’ conduct is all too apparent. As a general rule, tax preparers are only responsible for ensuring the proper tax treatment of a corporation’s transactions, and not for ensuring compliance with monitoring corporate governance.
Some basic best practices guidelines to have in place to help avoid complex mistakes, as well as help keep a firm’s finances and reputation intact include:
- Creating an Engagement letter
- Defining limitations of services from day one and enforcing them
- Making sure invoices match the scope of the engagement since any embellishment could result in fraud risks, and
- Staying informed and apprised of all IRS updates in the tax law and any revenue ruling from the IRS
Having a risk management plan in place, along with an Atlanta Professional Liability Insurance policy, can be key to having peace of mind all year long.