{"id":347,"date":"2023-11-13T19:09:54","date_gmt":"2023-11-13T19:09:54","guid":{"rendered":"https:\/\/pastorjoebrock.com\/?p=347"},"modified":"2025-09-25T14:03:20","modified_gmt":"2025-09-25T14:03:20","slug":"audit-proof-your-business","status":"publish","type":"post","link":"https:\/\/yeagercpa.com\/index.php\/2023\/11\/13\/audit-proof-your-business\/","title":{"rendered":"Audit Proof Your Business"},"content":{"rendered":"\n
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When meeting with business owners one of the most common fears they have is an IRS audit. \u00a0Most of the time this fear stems from stories they\u2019ve heard and experiences that others have had with the IRS. \u00a0Yes, this is something that should be taken seriously, but, it shouldn\u2019t effect your aggressiveness in taking every legal deduction that is allowed. \u00a0There is also no reason to live in fear of the IRS. \u00a0As long as everything is documented, recorded properly and accurately you have nothing to worry about. \u00a0Here are some steps you can take to \u201cAudit Proof\u201d your business:<\/p>\n\n\n\n

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  1. Use accounting software: Having a good set of books will take away most of the pain of an audit.  When the IRS sees this they think that you are at least attempting to do things correctly.  If the IRS feels like there is nothing to be found they will move on.  But, if you don\u2019t have any books and can document hardly anything the IRS will assume that most of your deductions aren\u2019t legitimate.<\/li>\n\n\n\n
  2. Keep receipts for everything $75 or more:  If the item is less than $75 you don\u2019t need to keep the receipt, however, you do need to record it in your ledger or accounting software.<\/li>\n\n\n\n
  3. Take notes: This can be done each day with your to-do list or on your calendar.  This is a good paper trail that shows what you did that day, where you went, who you met with, etc.<\/li>\n\n\n\n
  4. Keep track of your mileage:  This can also be done on your calendar or in a mileage book.  You should record the odometer reading at the beginning of the year and at the end of the year.  Each time you drive your vehicle for business you should record the date, where you went, the purpose of the trip and the mileage amount<\/li>\n\n\n\n
  5. Keep your records safe:  Backup your accounting software and store it off-site.  Store your paper documents in a safe location.  Also, keep everything for at least 3 years from the date you filed the return.<\/li>\n\n\n\n
  6. Self-Audit Your Return First: Look at the largest expense items on your tax return and ensure that those numbers are correct and also that you have documentation for those expenses. \u00a0The most common issue that triggers an audit are large expenses that are out of line with what a business of your size should have.<\/li>\n<\/ol>\n\n\n\n

    Remember the IRS is trying to collect as much money as possible.  If they feel like your are doing things correctly and there is \u201cnothing to see here\u201d they will move on to bigger and better things.<\/p>\n\n\n\n

    If you aren\u2019t using accounting software or keeping your books at all or you are worried about an IRS Audit, call my office at 757-436-4708.<\/p>\n","protected":false},"excerpt":{"rendered":"

    When meeting with business owners one of the most common fears they have is an IRS audit. \u00a0Most of the time this fear stems from stories they\u2019ve heard and experiences that others have had with the IRS. \u00a0Yes, this is something that should be taken seriously, but, it shouldn\u2019t effect your aggressiveness in taking every […]<\/p>\n","protected":false},"author":2,"featured_media":348,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/yeagercpa.com\/index.php\/wp-json\/wp\/v2\/posts\/347"}],"collection":[{"href":"https:\/\/yeagercpa.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yeagercpa.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yeagercpa.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/yeagercpa.com\/index.php\/wp-json\/wp\/v2\/comments?post=347"}],"version-history":[{"count":2,"href":"https:\/\/yeagercpa.com\/index.php\/wp-json\/wp\/v2\/posts\/347\/revisions"}],"predecessor-version":[{"id":746,"href":"https:\/\/yeagercpa.com\/index.php\/wp-json\/wp\/v2\/posts\/347\/revisions\/746"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yeagercpa.com\/index.php\/wp-json\/wp\/v2\/media\/348"}],"wp:attachment":[{"href":"https:\/\/yeagercpa.com\/index.php\/wp-json\/wp\/v2\/media?parent=347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yeagercpa.com\/index.php\/wp-json\/wp\/v2\/categories?post=347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yeagercpa.com\/index.php\/wp-json\/wp\/v2\/tags?post=347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}