"We get what we pay for" Article by Tina Zawila

Recently a new client provided us with their financial statements and income tax returns from last year.  Unfortunately, we could immediately see several glaringly obvious errors.  However, these errors were not obvious to the client and they had signed the documents in good faith and reliance on their former professional advisor.

The concerning thing about this, is that it is the client, not the advisor, who is ultimately responsible for the accuracy of the documents.  It is the client that signs the declaration that usually says something like “you (the client) are responsible for accuracy and completeness” and “the onus is on you (the taxpayer) to ensure that your return is accurately prepared and contains no misleading statements or information”.  And finally that you “understand your responsibilities”. 

Did you get all that?   Let me make it clear - ultimate responsibility rests with YOU, not your advisor, and if things are wrong, you will pay the price.

So how can you protect yourself? 

I think the key is find an advisor that you can trust, that will take the time to explain things to you, and one that is suitably qualified and is a member of a professional body.

Unfortunately, anyone can call themselves an “accountant”, but to be part of a professional body such as the Chartered Accountants (CA’s), or Certified Practicing Accountants (CPA’s), you need to do post-graduate studies, commit to ongoing professional development, and most importantly, your work must meet minimum quality control standards.  In fact, you will be subject to regular reviews of your work by the professional body, just to maintain your membership.

Just as in most things in life, there are always cheaper, lower quality products and services you can choose to buy, or you can pay a little extra to get high quality, reliable, superior products and services.  It’s your choice, and you run the risk.

At Sothertons Gladstone we are Chartered Accountants and members of National and International groups.  We are dedicated to providing high quality financial products and advice.  Call us on 4972 1300 for your own peace of mind.