In today's dynamic business environment, entrepreneurs increasingly rely on accounting firms to meet complex tax and accounting requirements. However, sometimes accounting services are performed improperly, which can lead to serious financial and legal consequences for the client. In this article, we will discuss the most common causes of such situations, their consequences, and the legal protection available to clients.
What is improper performance of accounting services?
Improper performance of accounting services involves a lack of due diligence or a breach of obligations arising from the contract with the accounting firm. Examples include: incorrect accounting of documents, late submission of tax returns, errors in tax calculations, and non-compliance with applicable laws.
Reasons for improper performance of accounting services
The most common reasons for improper performance of accounting services include a lack of accounting competences (insufficient knowledge or skills of persons dealing with customer service) or procedural negligence (e.g. failure to comply with internal quality control procedures).
The consequences of improper performance of accounting services can be very serious:
- Financial penalties – imposed by tax authorities for errors in settlements or late submission of declarations.
- Threat of fiscal criminal liability – in the case of more serious violations, such as concealing income or falsifying documentation.
- Additional costs – the need to hire a new accounting office or incur costs related to legal proceedings.
Customer legal protection
Clients have several options for protecting their rights in the event of improper performance of accounting services. It's always worth carefully reviewing the contract before signing. The contract should specify the scope of the firm's responsibilities, deadlines, and liability for any errors. If a client notices errors in their accounts or documents, they should immediately report them to the accounting firm. In many cases, the accounting firm will take corrective action to prevent the problem from escalating.
Civil liability of an accounting office
Accounting firms are subject to the provisions of the Civil Code and are obligated to provide services with due diligence. If a client suffers losses due to the firm's negligence, they can pursue compensation. Accounting firms are required to have third-party liability insurance. Clients can claim compensation for losses resulting from accounting errors under this policy. In extreme cases, if negotiations with the accounting firm are unsuccessful, the client has the right to take the matter to court. However, it is important to remember that appropriate evidence will be required, such as accounting records and a contract with the firm, as well as documents confirming the amount of the damage incurred.
For more information, please contact us. We will assist you at every stage of the process to obtain the compensation you deserve.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of January 21, 2025
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