You’ll be surprised to realise how easy it is to land in jail or end up paying heavy fines because of the mistakes your accountant made. A bad accountant is basically a bridge between you and financial ruin. So what should you do to avoid these ‘dodgy’ accountants? Fortunately, there are some warning signs that can help you avoid hiring someone who will steal from you or give you incorrect advice.
They Lie About Their Qualification
Qualified accountants need to undertake and clear exams, and gaining membership in a prestigious organisation can be quite difficult. If your accountant is actually qualified and experienced, he’ll have no issues producing the paperwork and credentials required. If they are coming up with excuses, they’re likely hiding something, and that should be your first red flag.
They Disregard Tax Evasion
A good accountant will understand how to maximise tax returns and tax credits without submitting misleading tax returns or false loan applications. A dodgy accountant will find illegal ways to evade tax to save money. If the accountant you’re considering brushes off the possibility of tax evasion, run the other way.
They Doge Your Questions
An honest accountant will help you stay on top of tax laws, maintain regulatory compliance with the local and national tax authorities. Qualified accountants will be able to answer your questions regarding any activity in your accounts. On the other hand, a dishonest accountant will try to dodge your questions and hide their activities from you.
They Are Open About Their Clients
This can be a huge warning signal. If your accountant is not able to keep the information of his other clients a secret, then he is probably spilling out your financial information to others too. It is different when accountants are describing their experience with their clients, but mentioning their names and financial details is not okay.
They Misrepresent Information
Some accountants can misrepresent important information such as your income, which could lead to difficulties while paying taxes. If your accountant is misrepresenting any of your financial details, you should probably expect a call from the ATO soon.
According to the Australian Taxation Office, there are some serious consequences for the following tax crimes:
- Hiding cash wages
- Avoiding tax
- Using complex offshore secrecy arrangements
- Falsely claiming refunds and benefits.
If you are found responsible for any of the above crimes, you can face serious penalties, criminal convictions, fines, and prison sentences.
Thus, it is extremely important to hire a good accountant and adhere to your financial duties. You can easily be (unknowingly) held responsible for the crimes of your accountant. It is important that you understand the transactions and account for each and every activity in your accounts to ensure that your accountant is not involved in any sort of criminal activity. To learn more, visit our website or simply get in touch with us so that we may provide the required assistance.