The Most Common Types of Professional Liabilities Accountants May Face

If you’re thinking about earning a degree in accounting and pursuing this profession, you may want to spend some time researching what the most common accountant liabilities are. From the possibility of malpractice lawsuits to the risk of business debt and more, knowing what to look out for can help you prepare for a successful career. Here are some of the liabilities you might face in this line of work.

Accountants May Face a Range of Common Lawsuits

Unfortunately, accountants may sometimes be at risk of getting hit with a lawsuit. Upholding professional standards can help you avoid this situation. Some of the most common lawsuits center on:

  • Malpractice
  • Professional negligence
  • Math errors
  • Improper filing and other procedural errors
  • Fraud
  • Mistakes on clients’ tax returns

Independent CPAs May Face Business Debt and Other Financial Issues

If you earn your CPA certification and choose to open your own practice, you may need to take on debt and financial risk. Independent accountants sometimes face:

  • Low cash flow in their independent business
  • Burdensome levels of monthly company debt repayments
  • An imbalance between debt levels and regular revenue

When you decide to pursue accounting as a career, it’s important to know about the most common accountant liabilities out there. From facing negligence or malpractice lawsuits to taking on financial risks when opening an independent practice, knowing what these liabilities are can help you prepare for your profession.