PROTECT YOURSELF FROM THE IRS!

Many business owners find themselves facing the possibility of an audit that could jeopardize their financial stability. But here’s the part you might not know: most people who receive those letters are not prepared.

They haven’t kept their accounting books up to date, leaving them in a high-risk situation.

What is an IRS Audit?

An IRS audit is a thorough review of a taxpayer’s financial records to ensure that the reported information is correct. This review can cover everything from deductions and credits to reported income and expenses.

Why Might You Be Audited?

The IRS selects taxpayers for audits for various reasons, including:

• Discrepancies in tax returns.
• High deductions compared to income.
• Inconsistent income reports from third parties.
• Third-party complaints.

Consequences of an Audit

Audits can result in significant fines and additional tax payments. Additionally, the process can be lengthy and stressful, negatively impacting your business operations.

The Importance of Keeping Updated Accounting Books

Keeping updated accounting books is crucial for several reasons:

1. Evidence of Expenses and Deductions: It allows you to effectively demonstrate your expenses and deductions, which can help minimize your tax burden.
2. Avoid Fines and Penalties: With accurate records, you can avoid errors that could result in fines and penalties.
3. Better Financial Planning: An updated record of your finances allows you to make more informed decisions and plan for the future.

How to Keep Your Accounting Books Up to Date

1. Use Accounting Software: Tools like QuickBooks, Xero, or FreshBooks can simplify the record-keeping process.
2. Record All Transactions: Ensure you record every financial transaction, no matter how small.
3. Review Your Books Regularly: Conduct a monthly review to ensure everything is in order.
4. Hire a Professional: Consider hiring an accountant or tax advisor to help manage your books and ensure compliance.

Don’t let an IRS audit catch you by surprise. Keep your accounting books up to date and protect your business from potential penalties and fines. Preparation and organization are your best defenses against an audit. Act now and protect your financial stability!

You can contact us at the following numbers:

• Charlotte: 704-569-1911
• Monroe: 704-635-7566

Or visit one of our offices:

• 3721 Eastway Dr., Charlotte, NC 28205
• 1503 E Franklin St., Monroe, NC 28112