Is your accountant or bookkeeper qualified?
So, you’ve got yourself an accountant? You may even have a bookkeeper. So now you can relax knowing your accounts are in safe hands. But can you, and are they? How do you know your accountant or bookkeeper is qualified? Did you ask for proof? Did you check up on them?
Despite what most people believe the term “accountant” or “bookkeeper” is not regulated and anyone can call themselves an accountant or bookkeeper even if they’ve had no training and have no professional qualifications. The only time they’re breaking the law is if they claim to have qualifications they don’t have. But if they don’t claim anything and you don’t check up on them you could potentially run into big trouble.
There is no law that says your year-end accounts and tax return have to be filed by a qualified accounting professional. You could file them yourself or you could get your mother, your father, spouse, partner, friend, work colleague or even Joe Bloggs off the street to file them. It’s simply in your interests to have someone with tax experience/knowledge doing it as they’re more likely to know the tax laws and reduce your tax liability to a minimum.
It’s important to be aware that when your accountant files your tax return and yearend accounts with HMRC it’s your signature on there, not theirs. You are the one that is ultimately responsible for anything that is declared on them and HMRC will have expected you to have checked your accounts for accuracy and to have understood and approved them prior to filing so the burden of proof is (un)fairly and squarely on you, not your accountant or bookkeeper. In the event of a gross error, HMRC will consider you the guilty party and proving your innocence may not be as straightforward as you think. Even if your bookkeeper or accountant has done something negligent they will have to admit to having made an error and they’re not going to do that without an argument or a fight. And even if they do admit the error you will have to pay any fines or penalties upfront and then claim on their PI insurance. If they have any.
How do you know your accountant or bookkeeper is qualified?
Please, don’t just accept it when your accountant and bookkeeper say they are qualified. Make sure you ask to see proof of their qualifications, their membership of a professional body (by law all accountants and bookkeepers, advertising themselves as qualified professionals, must be registered with a professional organisation for Anti Money Laundering purposes), their practice certificate and their professional indemnity insurance. And don’t be afraid to ask. Any self-respecting accountant or bookkeeper that has gone to the trouble and expense of getting themselves properly qualified will be delighted to show you their shiny certificates. They’ll probably congratulate you for doing so, tell you you’re the first person ever to ask them and say they wish more people would ask.
I wish people would ask me for mine…
Call us if you would like to know more about what I do and how I can help your business make more money.