Steps to Make the Audit Process Go More Smoothly

There are several things that you can do to facilitate the audit process should your business be selected for audit:

  • Use accounting software (Quickbooks, Peachtree, etc) to keep your accounting records
  • Keep your books and records up to date
  • Retain copies of:
    • Bank statements and cancelled checks/deposit slips
    • Credit cards statements and the supporting receipts
    • Invoices and/or statements received from vendors
    • Any tax statements prepared and/or received (1099’s, 1098’s, W-2’s)
    • All bank loans and mortgages
    • Lease agreements
  • Keep your documentation organized (i.e. File invoices annually by vendor)
  • Keep detailed and accurate supporting documentation pertaining to travel, transportation, and entertainment expenses (i.e. mileage logs)
  • If there are any loans between the Company and owners, make sure to have signed promissory note agreements prepared and on file

It is important that you keep detailed and organized records. In the event of an audit, the more organized your records are, the easier it is for you to respond to audit requests.