Hiring Accountants – Biases In Accounting Service

December 18, 2011 by  Filed under: Taxes 

Every citizen has to do things in order to fulfill his responsibilities to his country. That particular responsibility is paying taxes. Indeed, preparing taxes can be a difficult thing to do which is why businesses and individuals would turn to professional accountants. Even with the help of professional accountants, audits will still go awry. Most of the time, it’s considered as an honest mistake of accountants. However, it could be caused by other things like biases.

Favoring Clients

In reality, it’s important for accountants to stay in good graces with their clients. If their clients aren’t satisfied with their work, they could be fired or end up losing an account. For accountants and accounting firms, they will only have a successful career if they have good paying clients. Moreover, auditing seems to be a good way for firms to build relationships with their clients. It has become a consulting service with a fee. Since these accountants equate their interests to their clients, they tend to become biased and would favor their certain clients.

Familiarity With The Client

Bias could also happen when an accountant or a firm is familiar with the business or the individual. Generally, it would be easier for accountants to harm unfamiliar clients over familiar ones. Familiar clients could be high-paying clients or related individuals. Even if the accounts are questionable, accountants will unconsciously ignore this. Instead, they would approve the dubious account. Usually, the more familiar a client to the accountant, the higher the tendency in giving biased judgments.

Delaying Problems

Sometimes, there are people that tend to ignore their problems, even in accounting. Though it can’t be considered as a bias to the client, it’s a bias to the accountant itself. It is because they favor other things than completing their tasks at hand and most of the time, these are their vices. Sometimes, they delay important accounting reports because it could lead to harmful consequences. Thus, in order to avoid these problems, they would just avoid making the report until it’s required for them. During this time, they end up making a half-baked report.

Hiding Their Mistakes

Hiding accounting mistakes is another biased decision in accounting. Hiding accounting mistakes could lead to bigger problems in the future and could have a negative effect to their clients. Usually, most accounting problems nowadays resulted from accountants who are not willing to admit their errors. They would rather conceal their errors and continue to do so until they are forced to stop by someone else.

Accounting problems could be easily avoided if accountants are honest in their profession. Regardless on who are their clients or what could be the repercussions, an honest professional accountant will be able to give an unbiased report.

The remedy to your financial problems and obligations to the government may depend totally on how you handle your bookkeeping. But what is it gets too entangled and it’s more than you can handle? Then maybe it’s time you called in an accountant Toronto to take over and file your federal income tax properly. Check out their website at www.accountants-toronto.net for consultation and assistance regarding your bookkeeping and accounting needs.

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