When you own a business, the last thing you want to find out is that your accountant has breached fiduciary duty. When this happens, it means your funds have been used in an inappropriate way, something that may catch you off guard and make you concerned for the future of your business.
Accountants working with business owners have a fiduciary duty to the business once the business places trust and confidence in the accountants and they are in a contract together.
What happens when a person breaches fiduciary duty?
Many things can be considered a breach of fiduciary duty, from failing to disclose information to misappropriating funds. Here's an example. If your accountant takes the money you expected to have deposited into a savings account and invests it into their own stocks or portfolio, they've misused the funds you entrusted them with. Similarly, if you hire an accountant to place your funds in the best accounts for a return on investment and later find they did not deposit those funds within a reasonable amount of time, you could once again have a claim against the other party.
If you suspect a breach of fiduciary duty, it is in your best interests to speak up as soon as possible. You may be able to work out a resolution with the person who breached your trust. If not, you can contact your attorney and get the law involved in helping you seek damages from the responsible individual. Your business relationships should be taken seriously and it's not fair to be taken advantage of.