Tips to Prepare for an Upcoming Audit

An audit can be a stressful time of year, especially if you haven’t been keeping up with the necessary accounting tasks within your company. Whether you are being audited by the IRS, or you have an internal audit scheduled, it is important that you are prepared in advance.

While the audit is in progress, it can increase the stress levels if you are chasing down paperwork and financial details. Instead of waiting for the audit to start, you can be prepared by gathering the information that will be needed for the auditor.

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Financial Tracking is Not a Burden

Some business owners view financial tracking tasks as a burdensome task. These things are a “necessary evil” in case an audit happens. But, the truth is that these financial management tasks are essential to help you maintain the financial health of your company. View it in a different way: instead of looking at audits as a negative experience, reframe the experience to be motivation to help you keep up with financial tracking throughout the year.

Keep Accurate Records

The most important thing that you can do throughout the year is to make sure that you are keeping accurate records of every financial transaction that comes through. Even small transactions need to be recorded because everything adds up in the long run. By managing these records all year long, it will be easy to provide the requested financial information during the time of an audit.

Regular Reconciliation

One important aspect of maintaining your financial records is to practice the habit of regular bank statement reconciliation. Check the bank statements and compare this information with the transactions in the financial system. If there are any discrepancies, then you will have the opportunity to track down the paperwork and correct the error.

Implement Effective Systems

Putting the right financial systems in place right now will save you the headache of auditing problems in the future. The best thing that you can do is work with a trusted accountant who can offer assistance to help with these efforts.

At Easier Accounting, we understand the nuances of working with small business financials. We know that it takes a lot of work to keep up with financial tracking, and our team is here to help. For more information about the services that are offered, we invite you to contact us right away. Call us today at: (888) 620-0770