Whether your business is large or small, properly managing your company’s money is crucial when it comes to making and maintaining a profit. Solid financial record-keeping is a must in order to ensure a successful operation, and it is often the factor that helps business owners avoid IRS issues when tax season rolls around. All it takes is a few minor missteps—or one major one —for your business to end up with hefty fines and other damaging penalties due to poor tax practices.
The Power of Accurate Record-keeping
In general, good record-keeping is a valuable tool for sole proprietors, partners, and corporations alike. It allows you to do a number of things for your business, including monitoring overall progress, keeping track of deductible expenses, identifying income sources, and much more.
One of the biggest ways record-keeping assists in financial matters is by giving you access to the information you need to prepare accurate financial statements in an organized, clear format. Having these financial snapshots on hand allows you to report your tax information correctly and efficiently.
Consider the following reasons why maintaining accurate records of your finances can help lessen your chances of running into trouble with the IRS:
As a rule of thumb, business owners should record everything from purchases and sales to payroll. If you are concerned with the accuracy of your current financial records and how they may be affecting your standing with the IRS, speak with a knowledgeable Cook County IRS issues lawyer right away. Call the Law Offices of Eric G. Zelazny at 708-888-2299 for a personal consultation.