I take care of bookkeeping entries for two companies – one Inc. and one LLC. I complete this work from a home office. Each company employs the expertise of a CPA to take care of taxes, year-end reports, etc.
Am I still liable if something goes awry with the books (“making an error”)? As it stands, each accountant reviews transactions and has me make any adjusting entries before creating statements needed for taxes, etc.
Thanks for your time!
Congratulations on your business.
You would need liability insurance if clients are coming to your home. That would protect you for example, if they tripped and fell, and were injured.
However, what you’re mentioning falls under the category of Errors and Omissions insurance (E&O). That protects you if you make an honest mistake, and cause damages (such as a typo that causes your client to be fined). It’s typically not very expensive.
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Laura, Staff Writer
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