What are accountants like?

[Naked shorts]

Hi all,

This will be the first year I will be getting a tax accountant to deal with/massage my tax headache...

I heard from somewhere that when I choose one, I will have to sign a form that releases them from liability if something should go wrong?

Is this true for all tax accountants? It seems too me that if they screw up, then they should be the ones responsible, they are the experts, not me...

Any light on this?

 

[son of baglimit]

if your tax return is wrong due to an error on the accountants part, you are still liable - they are mearly acting on your behalf.

but most do have some level of liability insurance to cover their clients sueing them for incompetence.

 

[Julia]

But the reality is that most people are unlikely to sue because of the costs involved.

I have this year had major issues with my accountant. She has failed in several areas and has consequently put the compliance of my SMSF at risk.

I have made a formal complaint to the Tax Agents' Board and CPA Australia and am awaiting the outcome of this. At best they will 'discipline' her and could deregister her from their organisation. They make clear that they will not intervene in any dispute about fees, even though in this instance she has charged almost double the quoted fee, despite all the mess-up.

So I'd strongly advise you to get a clear quote in writing from any prospective accountant, and also a clearly written and signed advice as to the exact work to be done, including the dates it must be completed.
e.g. I am still waiting for the audit of my SMSF, despite the law clearly stating it must be completed prior to the lodgement of the tax return, the lodgement date for which was 15 May!

I'd suggest visiting three or four accountants, describe the work to be done, have them look at the paperwork you have, get the quotes etc in writing, and then go with whomever you feel most comfortable. Even that's no guarantee, however. This shonky woman I'm currently trying to deal with came across initially as bright, efficient and capable!!!

Good luck.

 

[Wysiwyg]

if your tax return is wrong due to an error on the accountants part, you are still liable - they are mearly acting on your behalf.

but most do have some level of liability insurance to cover their clients sueing them for incompetence.

I find that very hard to believe.I pay the accountant to do the job I am not proficient at.They take responsibility for any mistakes.

However, if we do make an error in the preparation of your tax return that costs you any interest or penalty on additional taxes due, we will reimburse you for the interest and penalty.

 

[Julia]

I find that very hard to believe.I pay the accountant to do the job I am not proficient at.They take responsibility for any mistakes.

You'd like to think so, wouldn't you? But, as I have recounted, tough luck baby. No responsibility is taken - or expected - according to their professional body.

Where did that last quote come from? Your accountant? If so, hold on tight to him/her.

 

[Wysiwyg]

Where did that last quote come from? Your accountant? If so, hold on tight to him/her.

Yes the company she works for quote that.If the information I give them is correct then it is normal for them to assume responsibility.