Can a bookkeeper be liable?

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A really important topic is whether a bookkeeper can be held liable for any mistakes that they make while working on your business. Now in all things in life, it really depends upon how you’ve engaged that bookkeeper to work on your business. If you’ve engaged them directly as an employee of yours, then the answer is sadly, no, because every employee that works directly for you has what’s known as vicarious liability. And that means they can’t be held personally liable for anything that goes wrong by doing that performing the duties. If, on the other hand, you’ve contracted your bookkeeper to work on your business, and they make a mistake, and that mistake costs you money, then you may will be able to take action against them to recover some of that loss. Something important to note though, is that many many bookkeepers will have contractual terms, but when you engage them to limit orders reduce or eliminate their exposure to mistakes that cost you money. Important thing to do is to clarify these terms and conditions up front so you know exactly where you stand. Make sure that your bookkeeper if they’re an externally contracted party has what’s known as professional indemnity insurance, and that covers you for any losses that you might suffer as a result of them. making a mistake.

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