You are being audited. Those four words can strike fear in the heart of any business professional in Rancho Cucamonga. However, it does not have to be frightening if you are properly prepared and have the right professionals on your side. When you choose Whyte & Associates, Inc for bookkeeping and other financial services, you can feel confident knowing your books are accurate and done right. Furthermore, if a tax audit does happen, we can help you prepare and represent your business.
Large corporations and high-revenue businesses are audited more frequently. Additionally, excess deductions, a disproportionate amount of expenses vs income, inconsistencies, missing employee taxes, and other suspicious details on a tax return will also increase the chance of any business being audited. However, a portion of audits at all levels are purely random. That means no matter how small your business is, and how well your return is completed, there is still a chance of an audit.
The good news is that you should have nothing to fear if you have done nothing wrong. However, you will need to be able to prove that you have done nothing wrong, so recordkeeping and accuracy are essential. A few crucial steps to avoid trouble down the road include: