As a client comes to trust and rely upon its CPA firm, there is a tendency to ask more and more from this trusted advisor. Not only will it eventually damage your reputation with your client, it could lead to mistakes and potential claim situations. You may feel the client will become disgruntled and possibly seek another CPA firm who can meet the new requests. Maintain Proper Distance Business relationships are often the basis of lifelong friendships. However, when it cones to an active client-CPA relationship, it is important to maintain proper distance.
Independence is a cornerstone of the accounting profession.
When personal or financial interests taint an accountant's work, professional liabilities are not far behind. Third parties, such as your client's clients, may assert that you were not performing independently and, therefore, the integrity of your work was adversely affected. In addition, involvement of family members with a client may also impair the firm's independence. Firms have even had problems when a CPA left the practice to work for the client. In general, additional activities performed for the client that are substantial in scope or involved with the core operations of the accounting system may compromise your independence.