Protect Yourself and Your Clients with Audit Insurance
The one letter that businesses or individuals do not want to receive from the Canada Revenue Agency is a notice that they are being audited. While some audits are routine and do not mean that there is a problem, it can still be a scary prospect for most people. It can also involve costs that your clients may not be prepared to pay, and having an audit can sometimes reflect poorly on your company.
Getting Audit Protection
To help protect your business, as well as your clients, you can purchase tax audit protection from companies like Accountancy Insurance. This type of insurance will help cover the costs that are often involved in being audited by the government. While these costs are usually the responsibility of the company or individual being audited, since your company is responsible for doing the tax return, your insurance will pay the costs.
Along with protecting your clients, getting cover from audit insurance companies will also help protect your business and its reputation. Since your insurance will cover the costs associated with your clients’ audit, they will be much more satisfied with your company. They will not be responsible for the costs of hiring an attorney or another accounting firm, or paying penalties for mistakes for which they are not responsible. A business’ reputation is almost as valuable as the size of its bank account, and having it tarnished can result in losing clients.
Types of Audit Cover
When you purchase a policy from audit insurance companies, like Accountancy Insurance, your business is covered for both business and individual tax filings. Whether you exclusively handle corporate taxes, or provide tax filings for individuals as well, an audit insurance policy will help provide cover for both types of clients. It also covers filings for goods and services taxes, and harmonised sales taxes for businesses.
Benefits of Audit Cover
If the CRA does audit one of your clients, they may go back several years to look at their filings if they notice any discrepancies. Fortunately, even if your accounting firm did not complete any of their previous filings, your audit policy will help cover previous filings as well as the ones that you provided for clients. This can save your clients hundreds of dollars and help earn their loyalty to your business.
Having this protection will prevent disputes with clients for not paying any fees associated with a CRA audit. Sometimes, if clients don’t feel they are responsible for the problem, they will refuse to pay the associated fees, but having audit insurance can prevent that issue. Its cover will take care of any costs associated with your client’s audit, and help protect both your client and your business.
Honest mistakes happen, and a resulting tax audit can be frightening to some clients. However, by purchasing a policy from audit insurance companies, you can give both your clients and yourself peace of mind that any resulting fees will be taken care of by your policy.