Category Archives: Insurance

Advantage Of Having A Professional Liability Insurance

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Chartered accountants are responsible for taking care of financial statements, tax returns and investment solutions of their clients. They have access to a lot of confidential details of their clients and maintaining the privacy and confidentiality is a tough task especially if the accountancy firm is large and has a number of employees. The accountants make some errors out of negligence that may result in financial loss to the clients.

The clients can file a lawsuit on the accountant if they are unhappy with your work or your negligence has caused them financial losses. In such worst-case scenarios, the accountant professional liability insurance as a safeguard from the claims of negligence or poor quality work.

The policy is specially designed to cover the accountancy professionals against the omission and commission mistakes. The cover offered by the accountant professional liability insurance helps them to take care of the claims made against them. The policy is most suitable for accountants, who take care of bookkeeping and management of a company’s accounts, preparing statutory yearly reports like profit and loss statements and balance sheets, file the tax returns and undertake other statutory responsibilities of the client company.

The provider of the accountant professional liability insurance policy agrees to pay the pre-determined liability compensation to the claimant. The policy also covers the legal expenses for fighting the lawsuit in the court. However, the accountant must have a working policy and inform the insurer about the claim as soon as it is filed.

The accountant must choose adequate cover depending on the nature and size of his firm. He should also consider the risks like cyber risk, governance risks and others he might face in the due course of business before deciding on the type of policy and the required cover. The accountant has to maintain a realistic view about the nature of the damages that can occur and the claims required. He should also consider the legal costs while determining the cover of the chartered accountant professional liability insurance policy he plans to go for. Choose a good and trusted insurance provider and opting for sufficient cover are two most important things to keep in mind while selecting the policy.

How To Identify Red Flags That Could Lead To Tax Audit

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History of the Internal Revenue Service has shown that annually not 1 per cent of taxpayers in America are being audited. The number is expected to remain the same for this year. Keep in mind that some of the audits they have conducted are only chosen in random and the taxpayer did not do anything that could trigger them. There are also audits that are caused by red flags by the taxpayers. When this happens, those who have audit insurance will be prepared with the fees that might incur. Here are some common mistakes that taxpayers make which could lead to an audit.

  • Do not overestimate amount of donations When a person donates, the IRS is giving a deduction as a form of motivation. Donations can be in the form of food, old vehicles and clothing. The only issue with this is that taxpayers are the one that states the value of their donations. In general, the amount of the deduction should range from 1 and 30 per cent of the original price of the donations. This is the safe range that is acceptable to the IRS.
  • Errors in calculation are one of the reasons why IRS calls for an audit. It is advised that taxpayers should review their form and have it checked by their accountant for any mathematical errors. The smallest error could raise the suspicion of the IRS which could lead to an audit.
  • One of the most common mistakes made by taxpayers is not signing their tax returns. The account will be more likely reviewed when this happens. This is an indication to the IRS that your signature might not be the only one you have forgotten.
  • Not reporting their income in their tax return can be tempting but it is essential to include everything you have earned as well as the amount you received from selling an asset. In case you get caught, you will be ordered to pay not just the back taxes but the penalties along with the interest.

Tax collection will not be complete without an audit and having audit insurance can help you from paying fees.

How To Write A Blog That Can Stimulate Curiosity

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Blogging about chartered accountant insurance is very challenging. Insurance is not a topic that can be considered exciting or interesting enough to gain traffic for a website. Most folks out there are not thrilled to read about insurance information because it means paying premiums for something that may not occur in the near future.

Create excitement by using an intriguing title for your blog post. A title can be short and unusual but it can stimulate the curiosity of a reader. The blog title is your marketing tool; make the most of it because it can create a difference. Make the reader curious enough to click on the link and entice him to read what you have written. If your title does not have the “wow factor “, it will simply be overlooked from the thousands of insurance blogs that can be found through a Google search.

After you have grabbed the attention through the title, make sure that content will provide value to the reader. You can write about the importance of chartered accountant insurance to provide protection to accountants and their clients in case there is a tax audit. Make the accountant aware about the assistance provided to avoid the substantial costs that may be incurred to comply with the different tax requirements.

However, never make the blog appear that you are selling insurance because it is very likely that accountants have already received countless proposals from other insurance companies. Imagine yourself talking to a person next to you in an elevator. You start a conversation hoping that you will get an opportunity to explain your business. Talk about experiences or the idiosyncrasies of some clients including the challenges of solving their problems. Influence the reader to continue on reading before you finally make that sales pitch towards the bottom of your post.

There is more than one good reason why chartered accountant insurance is very important for accountants and their clients. Tax audit activity has become very prevalent and substantial costs can be incurred if there is no insurance that will provide protection. Insurance can cover the professional fees while responding to the tax audit of a client.

Increase Insurance Sales Using Technology

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Nowadays, you can already use the newest and latest technology that is made available for the use of the public for your everyday routines. For example, a smartphone has now more features compared to the conventional mobile phones of the old which could only make and receive calls, and, send and receive text messages. Nope. Thanks for the Internet connectivity and the Bluetooth technology plus the emergence of the NFC technology, smartphones can now virtually do anything and everything for humans. For instance, you can now use your smartphone to book a ride in a taxi that will take you to the big mall in your city. Or, you can even monitor your baby’s daily activities even when at work via your smartphone which is connected to your home’s CCTV’s system which is connected to the WIFI. Make no mistake about it. Technology is still changing and evolving and it won’t stop anytime soon. And it has been affecting all industries of the world because everyone is using technology no matter what industry you belong to. In fact, even insurance sales agents who are struggling to increase insurance sales on a monthly basis are now employing the use of technology to generate more sales.

 

Nowadays, it has become more and more difficult for the insurance industry to increase insurance sales owing to the mere fact that insurance policies are not cheap and not all people have come to their senses that yes, they will be needing one of those insurance policies at one point in their life. The good news is, there are ways in which technology of today can be efficiently used by sales agents from the insurance industry to be able gather a higher number of sales and below are just some of the said ways:

  • One of the main reasons why technology has been so useful is that it allows agents to keep track of the vital information related to their work. With the proper use of technology, make sure that you track every conversation you had with your clients to be able to come up with plans to make sure that they will remain loyal to your insurance company.
  • Technologies such as smartphone can now be used to hold online video conversation. Take advantage of this feature by making sure that potential clients can reach via either chat support or even video calls.
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