No one likes to think about being audited by the IRS. If you’re a small business owner and have concerns about the possibility of being chosen for an audit, take a deep breath and read on. Being aware of what triggers an audit enables you to be proactive. Here’s how to avoid a tax audit for your small business.
Keeping accurate records for tax purposes and daily operations is critical when you own a business. Clear, organized records allow business owners to know where they stand financially at any given time during the year. You know that the IRS requires specific documents in order to evaluate the amount of taxes owed, so prior to reviewing your finances with your CPA, make sure your records are in good order when you submit them. Here’s why financial record keeping is vital for business, especially at tax time.