Whether you go the route of in-house accounting or decide to hire an outsourced accounting professional, accounting ethics is an important, relevant topic. Accountants have access to the financial information of individuals and entities. As we know, with great power comes great responsibility. There is always the potential and possibility of fraud or embezzlement. This demonstrates why accounting ethics is such an essential aspect of the accounting profession. One who manipulates figures in any way to cover up potential fraud not only puts the company at risk but can face serious consequences such as jail time. In order to avoid legal conflict, you need to ensure that your in-house or outsourced accounting is done with the utmost honesty.
Why Ethics Is Important In Accounting
4 Reasons Accounting Ethics Is Essential
We Are Handling Sensitive Information
Business owners deal with sensitive information all the time, and maintaining integrity is a part of your job. The same goes when handling your business’s bank account information, transaction totals, and other important financial information. In addition to recording your finances, you might also be responsible for handling sensitive employee information such as social security numbers or bank information. Ensure ALL information is confidential and secure. Don’t email sensitive data, make sure your WiFi is secure, and have firewalls or other security precautions in place.
Lowers Risk Of Legal Trouble
When you’re not compliant with accounting rules, you’re bound to get into some form of legal trouble. It may start off with a few unethical accounting practices here or there, but it WILL lead to larger problems down the road. To avoid any legal trouble, familiarize yourself with accounting ethics and the correct practices.
Your Business Is Counting On It
Ultimately, the most important reason for ethical accounting is that the entire organization depends on it. Just like customers and employees depend on each other to be ethical, so does your business. Putting an entire organization at risk for some small financial benefit is shortsighted and selfish. Establish honesty and integrity in your business/accounting ethics for the sake of your company.
Keeps An Objective View
Ethics and independence are both important factors in the accounting profession. In order to have a foundation of trust, ethical accountants must make unbiased decisions and recommendations. For instance, benefiting from the sale of one company over another could lead to bias that skews financial advice to a client. To remain objective and independent, it’s necessary to ensure that any recommendations are not subject to outside influence. An accountant must always remain objective and their professional judgment is compromised if influenced by someone else. At Agile Planners, we always uphold this bastion of integrity to ensure our accounting services are done in an ethical manner.
Approaching Accounting With Both Honesty And Integrity
We’re sure that you don’t have any intentions of adopting unethical accounting practices, but many employers aren’t familiar with the rules and regulations of accounting. This could lead to incidental malpractices and legal troubles for your company. Additionally, hiring an accountant who isn’t ethical and honest in their practice puts you at risk of losing a fortune and dealing with legal complications. Therefore, at Agile Planners, we can help educate you on the accounting process to ensure your business is maintaining its integrity and avoiding dilemmas at all costs. If you need professional advice from experienced and ethical accountants, please reach out to us and see how we can be of help!