Follow these quick tips for auditing your business and avoid the risk of not auditing your business

Risks of Not Auditing Your Business in La Verne CA Area

Running large and small businesses takes a lot of work, dedication, and knowledge. Many entrepreneurs are exceptionally busy, working long hours to achieve their dreams. Helping customers, employees, and other stakeholders is a priority. With so much already on the table, auditing and compiling company finances is a tough burden to bear.

Not auditing your business, taxes, and other things creates risks. If you’d like to discuss further auditing requirements and the risks of not auditing your business in La Verne, California, and other areas nearby, contact Whyte & Associates, Inc.

By auditing, we don’t mean “just” tax audits but also financial audits that could uncover issues, including but not limited to problems with your taxes. Businesses should regularly audit themselves, closely examining finances and other pertinent sources of information. By conducting your own audit, you can avoid audits from the IRS and other tax authorities.

An audit, either conducted internally or with the aid of a professional finance and accounting firm, could mitigate risks and help improve the position of your company. Let’s take a look at some tips for auditing your company.

Set a Reasonable Timeline

As tax due dates approach, you might audit your business to avoid any potential complications further down the road. Unfortunately, a rushed audit will often miss important things. Additionally, if you tie up your accountants and finance experts, it may make filing your taxes more difficult and result in a tax audit later. By setting up a reasonable schedule, you can ensure proper attention is paid.

Bring in Neutral Parties

You may need to bring in outside help, such as a tax and accounting firm, simply to get the required labor power to conduct an audit. Even if you have the resources on staff, bringing in neutral, external parties is wise. This way, you can double-check your finance and accounting team’s work and gain a fresh perspective.

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Document, Document, Document

Paper trails and extensive documentation are crucial for auditing your business and filing taxes. You want to get yourself and every employee in the habit of documenting as much as possible. 

Keep clear records of: 

  • Receipts 
  • Invoices
  • Expenses
  • Payrolls
  • Payments

It’s wise to create backups of data and records.

If you’d like to explore further auditing requirements and the risks of not auditing your business in La Verne, California, and other areas nearby, call or message Whyte & Associates, Inc at (909) 575-0080.

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