When running a business, it is essential to cut down on costs and save your finances. When this is not done with right strategy, it results in poor financial management. Apparently, this can be handled elegantly when you have a professional accountant in your organization. A business accountant is vital for business success and growth. A good business accountant can manage business expenses, cut down costs using legal loopholes, offer unbiased and objective ideas to businesses, save time to focus on other business aspects and handle legal financial issues
However, when your accountant makes mistake with your books or tax liabilities, your business will lose money. This is often referred as professional malpractice. But what exactly is professional malpractice? When you hire a lawyer or accountant, you hope that they will perform their jobs in line with the highest degree of professionalism, however when they deviate that involves negligence or carelessness that affect your business, they can be sued for failing to meet the expected degree of attention which could lead to professional negligence claims.
Every professional has the duty of care to their clients. They are expected to provide professional advices that meets the business standards. Apparently when they fail in any of the below aspects and show negligence in their duty of care, then they can have sued for compensation on issues such as:
- Failed Tax Payables – Business accountants should set ideal opportunities for companies for tax exemptions and better claims in tax avoidance schemes. These schemes help the businesses or individuals to reduce tax liability.
- Breaching Entrepreneurs relief issue – Entrepreneur relief help you to reduce capital gains. Some potential expert accountant can help the business get a tax relief of up to 10%
- Under valuation or Over Valuation of company assets – Some company’s greatest values are their intangible assets. They obviously increase the market value of the company, however when it is not expressed properly, it may also impair the management and cause professional negligence claims.
When these duties of care are not met, it results in the misinterpretation to the client. Accountant negligence claim are usually subjected to 6-year time limit. However, you need to do your legal proceeding without delays. The expert professional negligence lawyer can provide information about the funding you can claim for your loss and the procedures of how to progress the case. Furthermore, you need to provide evidences that:
- Your accountant owed you a duty of care
- Evidences supporting breaching of the duty of care
- Financial loss you have incurred due to breaching.
Once this is proven, your client is expected to mitigate your loss. However, there are few factors you should consider before you are filing your lawsuit. For instance, when you claim is less than the cost you are pursuing the claim, then there is no point to handle things legally. So, analyse other factors before you file a defamation suit. Filing defamation against a negligent business accountant is usually done with the help of professional negligence lawyers. Be aware that filing a lawsuit may or may not yield compensation; a disciplinary action may be taken against the professional.