As long as he documents whatever he does that isn't pure data entry (and bookkeepers do, do things other than pure data entry) so that the tax pro knows how figures were derived, its no problem. If the tax pro is comfortable with any reasonable method he used to recreate things, then its fine. If the tax pro is not comfortable, then the tax pro will either disallow some things or will come up with a different reasonable method.
Its NO risk to his career!!!!
You are absolutely, positively NOT risking your career at all. I am a tax pro and accountant and please believe me that this is no risk to you at all. As I said, you will want to document anything that you could not come up with without using alternate means, so that the tax pro who eventually does the return knows how you came up with things, but otherwise, you are FINE to do this.
A licensed and insured CPA will NOT take on a bookkeeping job, or if they do, they will charge an absurd amount of money for doing it. Most tax pros won't do bookkeeping either. They will often handle the final details of the books, but not the minutiae.
As a further to this, make sure you get a clear definition on what is bookkeeping vs. something more.
The something more is generally calculating accruals, amortization and depreciation. Traditionally something more also included financial statements but quickbooks and other financial software do that now. Although if a tax pro adjusts the books for whatever reason they would like instruct what changes to make in quickbooks to correct the financial statements. Its still not a bad idea to confirm that with one of his professors.
Accountingstudent PLEASE talk to one of your professors. I know for certain that I have given you accurate advice but you won't be certain of that until you get advice away from this forum.
Well, it is an example of you assuring a poster that there is "absolutely, positively" no risk - and me cautioning that there can be.
There's insurance out there that covers both accountants in their professional duties AND bookkeepers?
Well, it is an example of you assuring a poster that there is "absolutely, positively" no risk - and me cautioning that there can be.
There is specific insurance offered by insurance companies for bookkeepers and accountants for a reason - and it is not because there is absolutely, positively no risk. Errors and Omissions insurance covers bookkeepers and accountants if they make a mistake or mishandle someone's financial records, causing harm to that person.
As I advised earlier in this thread, and as you apparently agree, AccountingStudent should speak to one of his professors before helping the elderly man.
Just to clarify a bit, if a bookkeeper does not have the authority to sign checks, the bookkeeper cannot be held responsible for non-payment of trust fund taxes. Why?, because if the bookkeeper does not have the authority to sign checks, the bookkeeper has no ability to pay the trust fund taxes.
Yes. One link to information (out of many): https://fitsmallbusiness.com/cpa-insurance-for-accountants/
Just because a company will sell different types of insurances to different types of people does not mean a policy covers both. They both have different risk profiles. Any bookkeeper who pays for professional accounting insurance is a fool as he paid too much; as is the reverse as the accountant will have a lot left uncovered.