Small Business Bookkeeping Services in UK Making Audit Easy for Businesses

Managing financial resources for a small business is always difficult. On top of that if you have received an audit request from IRS it becomes even more frightening. The first thing a small business owner needs to do after receiving the audit notification is to take a deep breath and relax. An audit does not really mean that there is a loophole in your financial management; instead it means that the IRS has randomly chosen your business organization for examination on tax return. The verification will be on a close level to find out if everything is alright. During this time it helps to seek professional guidance from small business bookkeeping services in UK.

However, if you wish to survive the small business audit, these points will definitely help you in relaxing and going through this process calmly. The points to remember are:

• Take it Impersonally: The rule of thumb to survive small business audit is to avoid turning it into an “us vs. them” situation. Quit thinking that the IRS will take you down. It won’t. In fact, they are straightforward and friendly in terms of their duty. So, do not give them the vibe that you are trying to hide something or deceiving them. Even if there are mistakes, they are not going to harass you in rectifying those. According to Forbes, out of 2 million business returns filed every year, only 1.6% is audited. Thus, the chance of you being harassed is almost zero.
• Keep Things Simple and Straight: The IRS is usually forthcoming about their expectations from you during the audit process. You have to understand those expectations and therefore it is easy for you to give them what they want and consider your account closed. For instance, they might want proof of your donation to charity through mail. Simply get a photocopy done and submit it to them. Consider your audit complete. Even in the case of field audit, clear instructions are provided regarding the proofs. As long as you are not deceiving them intentionally, you can relax. So, do not make it more complicated and you will be surprised at how easy and smooth the process is.
• Make the Upcoming Audit Smooth: Now that you know what it consists of; make the next one simple as opined by your bookkeeper. Try to maintain income statements, financial records and tax records for 3 years. Additionally, retain your check book stubs for the same period of time. Keep a tab on the tax deductibles as well to avoid making any kind of mistakes in the record.

Professional audit for small business is not a very big issue until you make it that way. Keep it simple and straightforward for the IRS so that you can be safe. Keep clear records and also provide proofs for all the transaction and maintain clear books with the help of Isle of Man bookkeepers to avoid mistakes and thus any kind of penalty.