Is your tax return accountant liable for mistakes?

If you have hired a tax return accountant to complete your return, you expect that the work will be done properly. However, sometimes either intentionally or unintentionally, the tax return accountant could make a mistake on your tax return that may get caught by the ATO which could result in certain tax penalties.
After some alterations in law over a decade ago, anybody who prepares a tax return could be held liable for mistakes in the preparation of a return for someone else. A tax return accountant who made mistakes in your return could be subjected to an ATO monetary penalty. The accounting services provider may also get a non-financial penalty, like being unable to prepare any returns for some time.
This is an informative blog on the topic of what you must do if your accountant makes a mistake, and what is their liability?

Tax Return Accountant made a mistake – What may happen?

Here lies the twist! If the tax preparer makes a mistake, you must bear the penalties. If the mistakes were caused due to the omission of data from your end, you must work with your accounting services professional to make the corrections.
On the other hand, if the mistakes were caused by the tax preparer, you would be required to notify him about the correspondence that you’ve received from the ATO.
The professional accountant must analyze the mistakes by taking necessary measures. Such measures include filing an amended return at no extra charge. You must check the contract that you have already signed with the tax return accountant that mentions their liabilities.

As per ATO, below are some examples in which you may report your tax return accountant:

·       * Creating some alterations in the tax return data

·        * Creation or omission of income

·        * By creating false exemptions, generating large refunds

·        * Failure in signing tax returns they file and prepare

·        * Inability to provide a copy of the tax return to the client when they ask

·        * Waiting or holding the record of the client for some time for the preparation fee    to get paid

It depends upon you that how well you may convince the ATO about the negligence of a tax return accountant.
The ATO may then investigate and if it finds anything wrong, the license of a tax return accountant could be rescinded.

Can I sue a tax return accountant?
It is often the last resort as the taxpayer has to pay a certain legal fee. But, if the tax return accountant is not registered by the ATO or state-licensed, the only step is to take legal action. You may file a standard professional malpractice complaint with the state court in your jurisdiction.
To avoid dealing with such problems, it is the best option to research the candidate and find the best that suits your requirements. Like, if you deal with complex financial situations, you might need regular consultations by accounting services professional. 

If the tax return accountant has made a mistake, who will pay?
Originally the taxpayer is held responsible for additional income tax, but the tax return accountant could be held liable for the additional penalties in the form of interest and liabilities. According to economics, the tax preparer is left with certain small claims court as the only viable economic option.

What you must do if your tax return accountant makes a mistake?
Bring the matter to the attention of the tax preparer and quite often an amended return is warranted to correct the mistake. The reputable preparers cover the penalties and interest related to their own mistakes. 

Contact us to get the services of our tax return accountants
The tax laws are quite complex. So it is understood that mistakes may occur. But the ATO is not forgiving. Therefore, an efficient accountant must stay alert while filing the taxes.
The tax return accountants at Reliable Melbourne Accountant are enthusiastic enough that they are focused during the tax season and assure that you never have to face any hurdles in the path of success for your business. We know how to sort out the law and certain facts in tax controversy and take care of your rights with the ATO.

Call us now to grab our incredible services.

WHAT IS AN ACCOUNTING AUDIT?

The accounting audit has the necessary function of ensuring that a natural or legal person is not only telling the truth about their financial reports but also that the company's operations are operating as planned.

Accounting auditors can work within the company and perform an internal audit, but they can also be external agents and perform an audit for another organization or institution, such as the SAT

External and internal auditors:

External auditors are fully certified accountants who work as freelancers for a company or organization; These accountants aim to examine the financial statements prepared by the management of the company or organization.

In the case of internal auditors, we must say that they perform very similar functions to ensure that the financial statements of the company are truthful and accurate; however, they are employees of the audited company.

Company systems:

An accounting auditor not only checks that a company's financial statements are accurate but also checks that the company's systems are working as they should. The systems that an auditor is responsible for examining are those related to the internal controls of the company, or the measures adopted to reduce or eliminate accounting errors or fraud. The report released by the expert also points to possible internal holes in companies that, by not taking action, may allow employees to commit fraud and go undetected.

Financial goals:

Businesses should always strive to keep operating costs as low as possible without sacrificing productivity. The accounting audits to the objectives and financial goals established by the company and thus determine if the growth policies or plans are being carried out in the best way in order to achieve the stated objective.

Undoubtedly, the work of accounting auditors is essential in such a way that having their services is essential. If you wish to carry out an external audit of your business or companies, it is best to contact us, the experts at CPMD y Compañía, SC, where we have extensive experience in the field of accounting services and tax services.

THE FIVE MOST IMPORTANT FUNCTIONS OF MELBOURNE ACCOUNTANTS

The functions performed by accountants are very important since their main objective is to comply with the financial regulations established by the state in which they operate, as well as to facilitate decision-making by the management levels of the company or organization.

Among the main tasks that we can highlight are the five most important functions of Melbourne Accountants. 

Create financial statements: The accounting advisor is responsible for creating financial statements, which are summary reports that contain the use of company funds, as well as the financial situation in which it is. Its objective is to evaluate the losses or gains in a certain time.

Conduct audits: This function can be called as the synonym of examining and verifying the accounting documents, all with the purpose of creating a report that reflects if the audited information is faithful to the company that was the object of an audit.

Declare taxes: In Australia, the declaration is made before the Tax Administration System (SAT). In this statement, the amount of income earned in a certain period is stated. Likewise, the accountant has the obligation to complete the forms that he will present before.

Prepare payrolls: Payrolls are documents that record the days worked, as well as the salaries received by each employee. These documents include wages, bonuses, and deductions that are made to each worker.

Carry out cost accounting: Cost accounting is a technique for measuring and analyzing the result of business activity. Basically, it is a tool that helps in the decision-making process of the managerial levels of the companies.

As you can see, the service offered by the accountant is very important for companies and for the government; For this reason, if you wish to hire the service of experts, invite them to hire the services of Reliable Melbourne Accountants, an accounting firm Melbourne of experienced accountants where we offer excellent quality accounting services and tax accountant Melbourne. We are much more than an accounting firm since we not only offer accounting and tax consulting services, but we also provide bookkeeping services. We offer comprehensive services that allow our clients to operate under established regulations.

Tips for Finding the Right Tax Accountant

The services provided by an accountant can be inestimable to the trade. Despite the great job done by the bookkeeper to keep records, there is a need of the tax accountant to handle the bewildering tax laws and provide the financial advice to administer and spread business. Moreover, besides being just a tax preparer; an accountant can help to build a prototype for the outlook of the business. Hiring a tax accountant can make paying taxes much less annoying and they’ll consequently be able to help to hold onto every dollar that one is entitled to. A good accountant will be capable of telling how such a move would affect the taxes and/or the business's expansion.

However, finding a good tax accountant isn’t always a straightforward task. Since you are trusting some of your most personal and important information with them, your tax accountant needs to meet the highest standards. Furthermore, you need someone you can perform well with and look to for supervision about your finances.

How to Find a Good Accountant

Categories Of Tax Accountants

One will be able to find the right tax accountant if one is confident about for whom they are looking for. It’s important to examine what kind of tax accountant they need before they begin the search. There are some significant variations amongst different types of tax accountants. The three most common types of tax accountants are Certified Public Accountants, Enrolled Agents and tax attorneys.

Certified Public Accountants

It is a designation given to the individuals who clear the uniform CPA exam. Moreover, they meet the specific requirements regarding education and experience. CPAs are subject to the code of ethics. Most of the CPAs do tax accounting. A CPA can represent a firm that is dealing with an audit or have the payment arrangements with the IRS.

Enrolled Agents

 An enrolled agent represents the taxpayers before the Internal Revenue Service. They have also passed adamant verification and history checks as performed by the IRS. An EA is a person who specializes in sophisticated tax positions and they can also represent you if you have an IRS audit.

Tax Attorneys

Tax attorneys are responsible for managing compound tax issues like estate planning, international business or going to the tax court. They have specialized degrees in taxation and law. A tax attorney can guide a firm where the tax situation is very complicated and includes significant legal matters.

Referrals

By using the Internet or Yellow Pages, one can surf the number of accounting firms. If this method seems to be irrelevant, one can find out who other business people use and how satisfied they are with the services their accountant provides. When you call, tell the receptionist what you do and ask for the name(s) of accountants familiar with your type of business this information can be shortlisted for prospective accountants.

Prepare a list of questions you want to ask accountants

Don't be shy about asking about billing. Ask about billing rates and how these are determined. Often you may have a quick question that can be answered via a short phone call or email - how do they bill phone or email advice?

Moreover, one can ask about Licenses and designations they have. The period since he is working in the tax business. The tax issues in which he is specialized. Also, whether he outsource any of his work or he does it himself. It is also good to ask him that in how much time he will take to finish the taxes. One can also ask about the privacy policy and about not to share the tax information with the third party.

It's important that you choose an accountant that is familiar with the special requirements of your business and/or your tax situation so you can use these to potential accountants. For example:

• E-COMMERCE - If your business is internet-related, you'll want to find out if the accountant is familiar with e-commerce.
• INTERNATIONAL TAX ISSUES - If your business is spread overseas, you need an accountant who is proficient in international tax issues.
• EXPORT STRATEGY - If you're thinking about exporting, ask how an accountant might help you develop an export strategy.

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How to Hire Professional Accountant

“Who will count my money and communicate with regulatory authorities?” - these are the questions that every business owner faces, moreover, from the very beginning. Often an entrepreneur decides to take on such tasks. This is justified when starting a business or for small firms with simple financial transactions. On average, a businessman without an accountant spends on accounting from 10 to 30% of the working time and manages to do business quite well. But if accounting and reporting take away a lot of your strength and frighten you with its complexity, then the decision to hire a professional accountant comes by itself. And here are the options:

• Order accounting services on the terms of outsourcing

• Hire an accountant for a permanent job.

How to Find an Accountant for Outsourcing?

Transparent and convenient accounting services under the control of the circuit.

Remote accounting support is great for small businesses. You transfer accounting and reporting to professionals to throw all your energy into business tasks. This is especially convenient if the organization or individual entrepreneur does not yet have employees. After all, when you hire an accountant in the state and become an employer, you have a lot of additional responsibilities and reporting forms, and with the new responsibilities the work of the accountant, to whom you pay money, is added. Medium and large firms also often outsource certain accounting processes - for example, payroll.

Modern services allow you to establish work with partners via the Internet. So you can easily transfer primary documents to the accountant and receive reports on completed tasks.

How to Hire an Accountant in the Company?

For medium and large enterprises, the volume of accounting operations requires more attention. And the manager increasingly wants to discuss financial issues with an accountant. The tax system also affects the complexity of accounting. And when the remote employees no longer satisfy the needs of the company, it is time to take a specialist to the staff. The company will have to allocate funds for the maintenance of a new employee, but all arising tasks will be resolved promptly.

The accountant in many firms becomes person number 2. So it is very important to choose a professional whom you can trust. 

How to Verify the Professionalism of an Accountant?

First of all, pay attention to the quality and reliability of the accountant, because this person will have access to confidential information about your company. If you are poorly versed in accounting and tax law, invite a trusted and competent assistant to select candidates. And with it, pay attention to a number of conditions:

• Professional skills: the future accountant should understand the legal framework, paperwork, accounting methods, reporting.

• Work experience: study the candidate’s diploma and workbook, ask questions about previous jobs. It is good if the accountant worked for an entrepreneur with a similar type of activity. Important and experience in a particular tax system.
• Knowledge of information technology: the candidate must have working skills in modern accounting programs, be aware of basic accounting services and resources where you can get relevant information.
• Personal qualities: responsibility, attentiveness, perseverance, patience are important qualities for an accountant, they should not be underestimated.
• Sociability: you will need to build a comfortable business relationship with an accountant. Think about how easy it is for you to communicate with this person.
• When choosing an accounting company for outsourcing, pay attention to all of the conditions listed above, as well as the situation in the office. Check for software and licenses. Study the draft contract and find out if you can get a test period for the provision of services. Try to find customer reviews of this company.

Accountant found! Employee Registration Procedure

Now it remains to worry about the workplace for a new specialist, prepare the necessary documents and complete personnel and legal formalities:

• Add the position of an accountant to the staffing table.
• Prepare the job description of the accountant.
• Sign the employment contract with the candidate for the position and familiarize him with the job description.
• Issue a job order.
• Make an entry in the workbook of the accountant.

 If you OPT for Remote Accounting

You are convinced of the reliability of the company to which you want to outsource accounting. Now you need to perform a number of formalities - as a rule, the company itself will instruct you on further actions. 

• Sign a contract with an accounting firm.
• Hand over the constituent documents, primary documentation and other documents to your remote accountant. In most cases, originals are transferred, which are then stored in an accounting firm.
• Be in touch, continue to transfer the primary accountant in the agreed manner.

We hope that cooperation with a new accountant or tax accountant will bring your company clarity in business and new income!

7 Reasons Of Hiring Accounting Services For Small Business

No business can achieve the desired level when the absence of expert accounting. When one is having a small business, then possibly the budget would be tight. At that point in time, a necessity is to get the best accountant to do the task and that should also fit in the budget as well. At that time, an easy, effective and budget-friendly idea is to outsource the accounting services in Melbourne.

Such companies offering outsourcing accounting services are committed to fulfilling all your reporting, bookkeeping along with other financial requirements and that is to be done under budget as well. There are a number of small business owners who still didn’t believe that outsourcing is an easy and effective idea. They believe that it would risk their personal information, but, actually getting an exert one for the task not just save money, but proved to be beneficial for productivity at the same time. Here given are the points for the small business person which they should keep under the mind.

Lesser Operational Costs

The major point, which surely makes you hire the outsourced bookkeeper, is that it helps to lessen the operational costs, especially for small businesses. Your company is not that big, so there is no need for hiring a full-time accountant, this way you can save your valuable money and the time. At the same time, you needn’t invest in infrastructure, get the software, hardware, computer or other office supplies which are necessary if a full-time worker is there for your task.

Well- Managed Financial Records

This is an assurance from the outsourced accounting firms, to maintain the account books accurately maintained. Many firms even today use cloud-based storage services for keeping records. This way client can access these books anytime and no security would be compromised with the same.

24x7 Available Professional Help

The major considerable point for small businesses in the budget. With a tight budget, hiring the expert bookkeeper for the full time would not suit your pocket, but getting outsourced bookkeeping solutions would make you met experienced professionals under your budget. You would be able to get access to professionals who are experienced, knowledgeable professionals. The bookkeeping firms make sure their team is well experienced in the accounting practices and always being updated with the changing Australian tax laws. This makes you sure to get efficient services.

Least Legal Risks

Having legal trouble or penalties is like a nightmare for any of the businesses. When you are outsourcing the accounting services for small business Melbourne, then the risk factor would go less. The professionals would note down each and every penny coming to or going out of the business. This proves helpful to get maintained books and updated books make you sure you are paying proper taxes and penalties would not be there. If you are a defaulter or having issues or late tax payments, then have to go through huge fines and legal penalties.

Entrepreneurs Can Keep Focus to Expand Business

A business owner who is handling all the work of owning its own, they must be covered by a load of book management or handling factors all the time. This would allow him to think out of the box. But, when accounting for the complex task of the business is done by the team of experts, then without worrying, the focus can be kept to the expansion of the resources of the business. The time can be devoted to planning and using business development strategies.

Can Manage The Compliance Burden

When the company is well-established, then tax requirement and managing that goes a little tough. Not just taxes, but you need to keep the documents maintained due to some regulations. This enhances the burden, but when going with the expert professional to handle the same then can manage the books and enhanced workload well.

Business Planning Is Done Professionally

The accountants are skilled to analyze financial data which is helpful to get done future planning of the business. With their experience, future projects for business can be created. They also with their experience and knowledge to make informed decisions for the coming year. So, hiring professional accountants would help you get projections on the basis of accurate data.

Conclusion

Having professional accounting services is valuable for any of the business type and size. This is a helpful idea to fulfill the accounting and reporting needs and collectively can work for the growth of the business.