ORGANISATION IS THE KEY!

Organization The Key To Successfully Avoiding The Tax Man

Most people that are audited because of missing records, not because of dishonesty, so the key to avoiding the tax man is to have organized, efficient systems to keep records of your business income and outgoings.

Here’s a solution for you. Separate all your documentation by categories. You may want to consider categories for advertising, travel, auto expenses, utilities, rent or mortgage payments, professional fees, etc. Keep all receipts and canceled checks in the appropriate folder.

The burden of proof is on you. What’s more, small businesses are three times more likely to be audited than individuals. The auditors target is often reported business expenses, such as your travel expenses and your entertainment expenses. This should not be a problem for you if you have all of your expenses documented in an organized manner.

Stay organized all the year round and you will see the process is very simple and straightforward and will help you enormously if and when the auditor pays a visit.

For a comprehensive guide to all aspects of tax return management, listing what you can and should claim on your return get our Free Tax Guide.

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