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When an accounting mistake turns into malpractice

On Behalf of | Nov 8, 2023 | Accounting Malpractice

Many individuals and businesses use accountants for taxes and other financial concerns. Trusting a professional with one’s finances can help one feel confident that any tax-related or financial issues are being addressed legally based on Tennessee’s laws. But when an accountant makes a serious mistake, the client, whether it’s an individual or a business, can suffer. Some accounting mistakes fall under malpractice, and these are often costly and time-consuming to clean up.

Accounting malpractice is a serious matter

Like people in other professions, accountants do make mistakes. However, accounting malpractice goes beyond a simple mistake. People hire accountants because they believe that the costs of hiring a professional are worth it, especially when dealing with complicated tax matters and other financial concerns. Individuals and businesses put their trust in an accountant, believing that the accountant will do what is best based on the laws in the state.

Malpractice happens when an accountant is negligent and doesn’t provide the level of service that is standard in the industry. This could be from filing paperwork incorrectly, not meeting deadlines, or not following the Generally Accepted Accounting Principles in any other way. When malpractice occurs, one may suffer financial losses and face legal action.

Seek help when a loss occurs due to accounting malpractice

When one seeks help from an accountant in Tennessee, and that accountant doesn’t follow the standards of service, it may be considered malpractice. Anyone who suffers a loss that they believe is attributed to accounting malpractice can benefit from speaking with an attorney. A successful lawsuit against the accountant at fault may provide compensation to help one recover their financial losses.