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How to protect yourself against liability as a bookkeeper

01 Feb
  • To protect yourself against liability, consider the following practices:
  • Avoid public statements about your employer.
  • To all inquiries (even informal ones by phone) about your firm’s financial activities, answer “No comment.”
  • Add a cover letter to your financial statements that says, “I am not independent and did not audit the enclosed financial statements.”
  • Don’t be the only signatory of checks.
  • Hold checks until funds are available.
  • Follow to the letter pension laws and plan documents.
  • If you do work for a closely held corporation, consider asking for an Indemnification Agreement from the owners that personally guarantees payment of payroll taxes. This both protects you and allows the owners to run the business without having to countersign each paycheck.
  • If something that an employee does raises a question related to your area of responsibility (e.g., bookkeeping or office management), ask about it. For instance, if another employee is taking out cash without proper documentation, it is entirely proper to ask about it. Ignoring a questionable action or practice does not protect you and may result in your being held accountable for it.
  • More details on http://quickbooks-expert.us
  • Yeshwant Mehta (President) QuickBooks Expert Email: ymehta@quickbooks-expert.us
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Posted by on 01/02/2012 in Bookkeeping

 

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