Most clients I have are deathly afraid of an Internal Revenue Service audit. They have heard the horror stories and fear an audit could be the death knell of their business.
While going through an audit is not a barrel of laughs, there are things you can do to make it as easy as possible.
The best thing you can do is keep all of your receipts and more importantly keep them in some sort of logical order. For my business I have an accordion file and I simply file the receipts by the month they were incurred in. So if an auditor were to come in I could easily find a receipt if needed.
Another easy way to do this is to file your receipts by vendor by having a file for each letter of the alphabet or a file for each vendor. Again, this will make it easy to find a receipt if its needed.
You have to keep in mind that if you are audited you are essentially guilty until proven innocent. Having your receipts organized and easy to find will make it much easier to prove your innocence.
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