As a business owner, you have to wear many hats and be responsible for the successful running of your company. While business owners have to become proficient in many areas of business management to thrive and survive amongst their competition, there are some areas that are so critical to a company’s operations that it is best to use a dedicated professional.
A business’s ability to prosper and flourish heavily depends on the profits that it generates. As a result, making sure that the money a business brings in is used effectively and intelligently, while also meeting tax obligations, is critical. This is why, to ensure funds are accounted for and that money is being used properly, and within the boundaries of the law, many business owners decide to hire an accounting professional to manage their finances and tax obligations. However, when an accounting professional behaves negligently, and a business owner suffers losses, it is important that they understand their rights. It may be possible to hold an accounting professional liable for the damages that a business suffers as a result of accounting negligence.
California business owners do not have to shoulder the burden of managing a legal claim alone. The experienced Los Angeles business litigation attorney at the Leiva Law Firm offers assistance and legal representation for all matters related to business litigation.
When is an Accounting Professional Negligent?
Major implications can come along with accounting negligence. Not only can California business owners suffer significant issues and frustrations with the Internal Revenue Service, but these problems can also be incredibly costly. A business owner who suffered such an ordeal as a result of a negligent accountant or tax professional should immediately seek the counsel of an experienced business litigation attorney to see if they have the ability to obtain compensation.
Below details three examples of how a financial professional can engage in fraud or negligence with respect to their duties.
- Improper tax preparation.
- Providing guidance to a business owner that is false or inaccurate.
- Manipulating a company’s financials.
The repercussions of negligence or fraud by an accounting professional cannot be overstated. These acts can cause expensive and far-reaching problems for a business, its reputation, and its ability to continue to operate and function.
If you suspect that an accounting professional you work with has breached their fiduciary duty or engaged in fraud and you suffered losses, connecting with a legal professional to discuss your case should be done sooner than later. There is only a two-year statute of limitation in California to file a claim and get the compensation that you deserve.
Speak with an Attorney at The Leiva Law Firm
Once you realize that there are issues with your financials, it is important not to delay in getting legal assistance. If you would like to learn more about what you can do to remedy your situation, please call the Leiva Law Firm at (818) 519-4465. You are welcome to come in and meet with a business litigation attorney and have your situation evaluated. Initial consultations are free.