For accountants, good record keeping is not simply an administrative task. It is a core risk management tool and, in many cases, the difference between successfully defending a professional indemnity (PI) claim and being left exposed.
If a client alleges that advice was incorrect, incomplete, or completely absent, the quality of the accountant’s records will often become central to the outcome.
A clear, contemporaneous note of a meeting or conversation can therefore be invaluable. Without that evidence, an accountant may be left relying on memory alone, often years after the event.
Professional indemnity considerations
From a PI perspective, poor records make claims harder to defend.
The old adage, “if it isn’t written down, it didn’t happen”, is especially relevant for accountants. In the context of a PI claim, the question is rarely whether the accountant believes they gave the right advice. The question is whether they can prove it.
Insurers and solicitors defending a claim will need documents that support the accountant’s position. If the file is incomplete, inconsistent, or silent on key points, it becomes much more difficult to rebut the client’s version of events.
The absence of a proper note can turn a defensible complaint into a costly dispute as the court will expect an accountant to have kept proper records. Where the accountant’s paperwork does not stack up, the court is likely to view their evidence with caution.
A short, accurate file note made at the time will carry more weight than a reconstructed explanation prepared after a complaint has arisen.
How can you improve record keeping?
Good records do not need to be lengthy, but they do need to be useful. Accountants should aim to record the date of the interaction, who was involved, the client’s instructions, the advice given, any options discussed, the risks or limitations explained, and any actions agreed.
Particular care should be taken where a client chooses not to follow advice or where deadlines are discussed. These matters should always be recorded in full in writing (and ideally sent to the client in an email or letter). Other areas where accountants should be careful to ensure there are comprehensive records include:
Meetings or calls where tax, accounting treatment, filing obligations, or deadlines are discussed.
Situations where the client gives lengthy, complex, or detailed instructions.
Warnings given to a client about risks, consequences, or the need for specialist advice.
Decisions by the client to proceed against advice.
Strengthening organisational resilience
Embedding record keeping into everyday practice is also a sign of a well-managed firm. It supports continuity between team members, helps supervisors review work, and reduces the scope for misunderstanding. It also demonstrates professionalism to insurers, regulators, and the court if the firm’s work is later scrutinised.
Good file notes are not paperwork for paperwork’s sake: they are evidence. They protect the accountant, assist the client, and give insurers the best possible platform to defend a claim. For any accountant looking to manage professional risk, the message is simple: record the interaction, confirm the advice and make sure the file tells the story.
Memories fade, people move on, and recollections often differ. If it is not written down, do not assume you will be able to prove that it happened.
To reach out to a member of the team, visit Lockton’s Accountants (opens a new window) page.
