Companies are required to publish their financial statements at the end of each fiscal year. Listed companies, also known as public limited companies, have a legal obligation to submit their accounts and publish them when their financial year ends. The financial statements include the statement of changes in equity, the statement of financial position, statement of cash flows, and the income statement. All of these documents are used by investors and the general public to determine the company’s financial position. Investors use these financial statements to decide whether they should invest more money in a company or not.
However, the tax authorities and the financial ministry of the government also requires access to such financial documents. These documents are reviewed by tax agents, who determine the tax liability owed by the company. Federal, state, and regional agencies all have different requirements. Therefore, these financial statements play a very important role for many users.
However, if the federal agencies think that there’s a discrepancy in the financial statements, they might require an independent tax audit. This is a major issue for companies that are still growing and posting increased revenues each year. Needless to say, independent tax audits cost a lot of money. Your company’s progress can be significantly affected if you are paying large sums of money each year just for a tax audit.
If you want to avoid paying such a large fee each year, you should seriously consider purchasing an accountant professional liability insurance policy from private firms, such as Accountancy Insurance. The insurance policy will make it easy for you to go on and about your business without having to worry about fines and audits every year. Here are some of the major benefits that the policy provides.
Covers Professional Fee
The accountant insurance covers the professional fee that’s charged by tax accountants for carrying out official enquiries, investigations, reviews, and thorough audits. You don’t need to pay a dime out of your company’s profits. The insurance premium will be calculated depending upon the number of reviews that have been conducted against your company in the past, as well as your financial performance.
Avoids Disputes
If you have the professional liability insurance policy from Accountancy Insurance, you don’t need to worry about disputing payments with clients. The company will foot the bill for the audit or review, so you don’t have to approach your clients due to the fee incurred from the audit. Furthermore, the fee amount will be paid promptly to the company directly, so you don’t need to worry about running up a credit loan.
You should know that the insurance policy also covers audits of previously lodged returns. It demonstrates to your clients that you are proactive and always looking out for their best interests. It’s a highly effective and cost-efficient solution for those who are looking to improve their business and mitigate costly expenditure. It will significantly improve your company’s profitability and also give you the peace of mind that you need.