Wall street Journal blog – http://blogs.wsj.com/independentstreet/2009/01/29/how-small-businesses-can-avoid-a-tax-audit/
Specifically:
- Keep organized records and receipts. Obvious, right? But it can’t be stressed enough. Messy records look like somebody’s trying to hide something or may have forgotten to document that one big payment. Use an accounting program that allows for double-entry bookkeeping, and keep very neat records and receipts.
It is vital to store your financial records (either as paper or images). Every small receipt matters. And the IRS does accept PDF images as proof.
#1 by fifi@taxes on February 24, 2010 - 7:06 am
This is really true! Keep receipts for at least a year, that is for me though. This truly helps.