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Category Archives: Small Business Bookkeeping Atlanta

5 Ways to Avoid Prepare for an Audit

5 Ways to Avoid Prepare for an Audit

Figuring out a way to avoid an audit may sound good, but the eventual outcome isn’t really in your control. Sure, there may be ways to increase your chances of not being audited, but the fact is that anyone can be audited, randomly, at any time.

Don’t avoid an audit; prepare for it. Here are five tips and recommendations to better prepare you for a potential audit:

#1: Don’t Panic: Your Issue may be Very Easy to Solve

An audit can send shivers up our bodies or make us stop in our tracks. That’s certainly understandable, but the reality is that many audits aren’t as scary as you might think.

Did you know the IRS sends more than 1 million letters each year to taxpayers who didn’t sign their returns? Other letters may require a simple response to a specific issue, such as making a payment, account changes or providing more information.

These are harmless inquiries that yield easy resolutions you can provide on your own.

#2: Keep Good Records

Whether it’s your tax returns, source documents, or checks received and cancelled, you must keep copies of all tax records. Credit card statements simply aren’t enough because you may be asked to provide more documentation.

Keep your receipts on file; Sound Business Services (SBS) can provide you powerful solutions to keep up with your receipts and reconcile them with credit card transactions and bank data. It’s a process where we tap into amazing technology and apps, and use our knowledge and experience, to help you keep good books and records up to date, while also providing actionable data and insights.

#3: Don’t Be Duped by Fake IRS Emails or Calls

The IRS will only contact you directly by mail – not by email or through a phone call. Imposters will often pose as IRS staff over the phone and demand money from you to fix a “supposedly” dire situation or need. Others will email you and include a link that can lead to identity theft or ransomware. Know that the IRS will neither send you this kind of link nor call you over the phone, demanding something urgently.

When you do reach out to the IRS over the phone, make sure you take down the agent’s ID number and name, log the time you spoke to the agent, and jot down any important points he or she covered in your conversation.

#4: Don’t Mix Business and Personal Expenses

Your business and personal expenses need to be clearly defined. With meals and entertainment expenses, it’s tempting to try to claim more than may make sense – and that may trigger serious red flags. If your business meals are legitimate and not personal in nature, they’re acceptable; however, you must have receipts and appointment information to prove that.

#5: Be Honest

Honesty is extremely important to me. It’s something I look for in my team and my clients, and especially important when it comes to taxes and the IRS.

Being dishonest opens you up to an audit, and lying to the IRS will only further hurt matters. We all make mistakes, but make sure you are forthright with everything you do, or you could be facing painful consequences.

Reach Out to Us Any Time

Of course, SBS is here to help make sure you are prepared for an audit. We know how sensitive this subject is, and we will guide and help you through the entire process.

Contact us today to get started, or to learn more about how we can help.

How to Work on Your Business Instead of Working in Your Business

How to Work on Your Business Instead of Working in Your Business

As a business owner, are you spending too much time on back-office operations and internal matters instead of finding new customers/clients? Of course, you want to grow, but you may be spending more time working in your business instead of on your business – and you’re not alone. Most of us do. Yet, there are…Continue Reading

SBS Client Profile: Sam Woodhouse of Woodhouse LLC

Welcome to another Sound Business Services’ (SBS) client profile. We recently interviewed Sam Woodhouse, managing partner of Woodhouse LLC in Atlanta, Ga. Here is what he had to say about the driving force behind starting the company, how it’s changed and expanded over the years, and what he gets out of the SBS relationship. Jonathan…Continue Reading

Cash Flow Tips to Transform Your Business

Cash Flow Tips to Transform Your Business

Many business owners overlook cash flow, or simply let it go over their heads and do nothing about it. Doing so can cripple a business, and at the very least, keep it from growing. As a small business owner, cash flow is what matters the most – representing the key to not only survival, but…Continue Reading

Disaster Recovery: Act Now Before It’s Too Late

Disaster Recovery: Act Now Before It’s Too Late

None of us want to think about going through a natural or man-made disaster, much less spend ample time planning for any kind of worst-case scenario. But, when it comes to something that can literally wipe out our businesses, there is no better time to prepare than right now. According to BackBox, around 50% of…Continue Reading

There’s a Reason “Success” is Part of Succession Planning

If your business does not have a succession plan, you need to get started on one right away. I really don’t mean to scare you, but plain and simply put, every business ought to have a succession plan. If you are under the impression you don’t need one because you’re not planning to make any…Continue Reading

QuickBooks Desktop to QuickBooks Online Conversion: Just a Leap of Faith Away to Big Benefits

QuickBooks Desktop to QuickBooks Online Conversion: Just a Leap of Faith Away to Big Benefits

A lot of us think that QuickBooks Desktop and QuickBooks Online (QBO) are one in the same, but that’s not exactly the case. Sure, they do the same thing, but they are on two very different platforms; QBO takes you places (literally!), proving the bridge to unlock untapped potential and the ability to take your…Continue Reading

Ransomware – Act Now Before It’s Too Late

When it comes to security threats and cyber attacks, we often don’t take any action until it’s too late – when it’s in our own backyard or it happens to someone we know. The latter recently happened to a colleague of ours with ransomware, something that shook us to our core and reminded us to…Continue Reading

The Power of Three: Benefits of a Client-CPA-Bookkeeper Team

A common misnomer is that a CPA and a bookkeeper are one in the same, when in reality, they have different roles. While the CPA deals with the day-to-day numbers, forecasts and tax filings, the bookkeeper turns the client’s data into actionable results to help take a business to the next level and grow exponentially.…Continue Reading

SBS Client Profile: Bruce Bishop of It’s Maid Day

Welcome to another Sound Business Services’ (SBS) client profile. I recently interviewed Bruce Bishop, founder and general manager of It’s Maid Day in Kennesaw, Ga., a suburb of Atlanta. Here is what he had to say about the driving force behind the company, the values that set it apart and what he gets out of the SBS…Continue Reading