Accounting & Bookkeeping & Small Business Forum

[Guest]

I attended a seminar a couple weeks ago that seemed to answer all the
questions I had ever had about doing accounting and bookkeeping out of my home. I
have worked as accountant for 25 years in many different situations and as an
internal auditor in a County credit union and for County government. I was
trained in fraud auditing and in business taxes, but only have two years college
accounting. Now I have health problems that limit the number of hours I can work
and I have not worked outside the home for a year. I need to earn some income,
but I do not wish to do the small business taxes, so I asked a tax accountant
who has a masters if she would like to do it. Her concern and now mine is
what kind of liability can arise with home accountants/ bookkeepers? I believe
she can have a waiver of sorts signed to not be liable if she uses my summary to
prepare the taxes, but what about my liability. Do we need errors and
ommissions coverage? Will this video answer this question? thank you, Susan Roush

[Guest]

Susan,

The term errors and ommissions coverage is not ever mentioned in this course. However, if you are a student, you can definitely contacts the staff at Universal and they will no doubt dress your specific questions.

[Guest]

Susan,
Yes you need error and ommission coverage. You will be liable for the accuracy of the information you provide, the tax accountant is liable for the services she provides. You can find errors and ommissions coverage thru your local insurance agent. But if your car and homeowner's agent doen't provide it, they will be able to tell you where to get it. You could also joint the American Institute of Professional Bookkeepers and they have coverage. The address is www.aipb.com.
Good luck,
Tish

[Guest]

Hi, Susan. What was the name of this seminar? Offered by whom? and where? Thanks, ~Jeniffer~

[Guest]

Would you be able to tell us generally what the cost of this coverage is? Is it a percentage of revenue, is it based on your years of experience, etc...?

Thanks,

Derrick

[Guest]

I'm getting mixed messages regarding error and ommision coverage for our bookkeeping service.

Some have said yes you need it, of course an insurance agent say's you need it for obvious reasons. I heard a non CPA performing general bookkeeping functions falls under the same category as a tax preparer with the responsibility falling on the owner. Please help, we are conducting business in the Ann Arbor, Michigan area.

Thank you,

Keith Frank

[Guest]

Try this phone # thier rates are reasonable for E&O insurance. (860) 284-0088