As an accounting firm, we meet a lot of clients that do not always understand why we need to do their accounting in a specific way or ask for more detail regarding their transactions. Accountants must be registered with a professional body. To be in good standing with the professional body, the accountant must comply with the rules, and must complete continuous training courses. This training ensures that the accountant stays up to date with the latest legislation and accounting principles. Accountants, due to our professional registration, are liable for any misstatements that occur on the financial documents of our clients that get signed off by us. As a result of this, accountants can face legal charges or monetary losses, not to mention the loss of their professional and ethical reputation, affecting future business.
By signing off on financial reports of a company, an accountant confirms that the company has been managing its’ finances in a way that agrees with current legislation, complying with accountant standards and regulations, and complying with tax laws. It is the responsibility of the accountant to advise their clients with regards to these legal standards, and how to achieve overall compliance.
Financial reports are used to make big decisions like loan approvals, possibility of investment in a company etc. Should the information be incorrect, it can cause losses to banks or investors, for which the accountant will have to take responsibility, because they should have the expertise to advise on issues like this.
In our company, we had clients before that we refused to assist going forward, because the client did not understand the risk that we would have taken by doing their financial reporting in the way that they wanted. Continuing with these clients’ work, we would have put ourselves at reputational risk and our company could have been affected in a negative manner.
If you contact to our company for assistance with your accounting, you will be advised according to the legal way to move forward to keep your company in good standing. You can rely on receiving expert advice and assistance in managing your company’s financial reporting, and by doing this, growing your company to its’ full potential.