All bookkeepers are reliant on generally accepted accounting practices for all their work. They ensure that there are some good accounting practices. The bookkeeper Gold Coast would be required by the law to adopt some new practices and create a financial statement for the business. All new businesses have to be aware of new standards so that all the clients can get the best treatments. There are things that you should be aware of when you are a bookkeeper like Darcy Services, and this article takes a look at that.
Illegal transactions
Some clients might ask you to make a false financial document or make an account so that they can hide the profits. You should avoid doing this at all costs. If you get caught, you would be prosecuted for making false claims because you are the bookkeeper who is on record. If a client wants to get out of trouble, then they might put the whole blame on you, saying that they had no idea of the way that you were creating the fraud. The client could also say that you are making all the entries by yourself and you are stealing from the company. Even if you do not have a public license for accounting, there are still laws that you have to follow, and there are ethics that govern accountants and require them to be honest and reliable in every way. Even if a client threatens you, do not get into fraud under any circumstances.
Payroll
There can be a lot of problems if the client’s employees start to get paid because once a company hires someone, then they have to follow all the company rules and report for all the regular working hours. Once this happens then, payroll taxes have to be done. All bookkeepers have to track the employee hours and report the payroll even if you are not paying the checks by yourself. There might be some people who work and are called contractors; these people get their full compensation, and many times, the line can be blurry because people want to avoid taxes. Be aware of any people under contractors because they might lead to fraudulent activities, and you should not play a part in any of the activities.
Damages
Whenever there are any frauds happening, then you can face some criminal charges, but you would also be liable to all the victims for damages in the fraudulent bookkeeping activities. Many of the victims who have faced bookkeeping fraud are investors, and they might always sue the company for false reports. Many investors might say that they would never invest in the company because they saw the incorrect financial statements. You might also get charged with conspiracy, conflict of interest, and racketeering if you alter the facts of any transaction. So it could get you in trouble.
Conclusion
Bookkeepers need to be aware of the things that they can and cannot do because it could lead them into a lot of trouble. The bookkeepers would be in a lot of trouble when they are not aware or take part in the fraud, so you should be aware of all the things mentioned in this article.
