When Accountants Get It Wrong, Can You Sue for Professional Negligence?
- Justeen Dormer
- 7 days ago
- 3 min read
Professional Negligence
Relying on an accountant to get it right is standard practice, but what happens when they get it wrong? If your accountant has given poor advice, missed deadlines, or made errors that led to tax penalties or financial loss, you may be able to bring a professional negligence claim. This article explains what qualifies as accountant negligence, how to prove it, and what compensation you may be entitled to. Legal claims against accountants are complex, but if their mistakes have cost you, it may be worth taking action, ensuring financial professionals are held to professional standards.
Most people rely on accountants to get the details right. Whether it is tax advice, business structuring, or compliance with ATO obligations, the role of an accountant carries serious responsibility. So what happens when your accountant makes a mistake that costs you money?
If you or your business has suffered a financial loss, received penalties from the ATO, or been misled due to poor advice from an accountant, you may have grounds for a professional negligence claim.
Professional negligence occurs when a qualified professional, such as an accountant, fails to exercise reasonable skill and care, and that failure results in measurable harm. In the case of accountants, that harm often comes in the form of penalties, lost opportunities, or unexpected tax liabilities.
Common examples of accountant negligence include providing incorrect or non compliant tax advice, making errors in a tax return or lodgement, failing to act within deadlines, or not flagging financial risks in a transaction. Sometimes the damage is personal, such as a poor investment outcome. Other times, it affects an entire business. Either way, if the accountant owed you a duty of care and breached that duty, and you suffered loss as a result, legal action may be available.
To succeed in a claim against an accountant, three elements must be proven. First, the accountant owed you or your business a duty of care. Second, there was a breach of that duty. Third, the breach caused you to suffer a quantifiable loss.
Examples of loss might include direct financial penalties, unpaid or overpaid tax, interest charges, legal costs, or broader business losses tied to poor financial advice. In some cases, accountants may have provided advice that was unsuitable for your specific circumstances or failed to identify red flags that required urgent action.
Claims against accountants require careful preparation and often rely on expert opinion. Other professionals in the accounting field may be called on to assess the standard of care and whether your accountant’s actions fell below what is considered reasonable in the profession. Independent bodies such as the Accounting Professional and Ethical Standards Board may also provide relevant guidance.
At Dormer Stanhope, we understand the complexities of bringing a professional negligence claim against an accountant. We take the time to understand your situation and gather the evidence needed to support your case. This may include financial records, accountant communications, expert reports, and tax documents before and after the error occurred.
If we believe you have a valid claim, we will work with you to calculate the appropriate compensation. This may include past and future financial loss, legal fees, costs of fixing the accountant’s errors, and other associated expenses.
We offer these services on a no win no fee basis. Time limits apply to negligence claims, so it is important not to delay. If you believe your accountant has failed in their professional duties and caused you or your business loss, contact Dormer Stanhope for a free and confidential consultation.
