A chartered accountant is a professional accountant who does several activities in the area of accountancy. The tasks of a chartered accountant include the filing of tax returns, auditing of financial statements, and financial advising to mention some.
It is ironic that the profession of a chartered accountant which focuses on cutting financial risks is also filled with risks. It is the job of an accountant to ensure the good standing of a company’s financial status. There are risks that you may face while doing your duties. To cover the possible risks, it is essential for the professional to get chartered accountant insurance to cover for possible losses in the conduct of his duties.
The professional risks involved being a chartered accountant when you are imparting pieces of advice to your clients may include the following:
- Bookkeeping, accounts preparation, and accounts management
- Business valuations
- IT consultancy
- Forensic accounting
- Migration services
- Investment advice
It is unfortunate that some claims against the professional often happen to the best practitioners. The client would do everything to get indemnity of losses incurred regardless of your good job performance. Thus, it is always essential to get covered with chartered accountant insurance for security purposes.
The sad thing for chartered accountants is that even shallow and trivial claim can cause much destruction to his profession. A chartered accountant professional can face the risk of losing his reputation with just a frivolous claim as well as the hassle and burden that go along the claim. Accountants are obliged to comply with the requirements of the client. In some situations, glitches happen when they don’t expect them, and the last thing they know is already a lawsuit over their heads. Accountancy lawsuits are costly and at the same time protracted, thereby giving much hassle and inconvenience to the accountant.
Lawsuits arise from breach of duty, negligence, errors, claims on poor performance, incorrect tax returns, misinterpreted statements, conflict of purpose, privacy invasion, confidentiality breach, and employee dishonesty.
Because of the possible risks that can happen in the performance of duties of the chartered accountant, it is essential for the professional to be secured by insurance coverage.