Home Care Agency Business Tips
As they often say, the three most feared letters in the alphabet are I.R.S. What can you do to avoid an IRS audit? What can you do to limit your risk should you be audited? Here are some things to consider:
- Use accounting software to keep books on a daily basis and input all financial transactions into this software. Use one database for your business and one for personal financial data to ensure that 100 percent of financial transactions are recorded.
- Verify that your tax preparer is licensed, and question them to determine if they are knowledgeable about the exceptions for small business enterprises.
- Submit a list of questions to get the additional missing information and prove that review and analysis is being conducted.
- Show larger deductions and provide all documents received from banks and brokerages in order to create a detailed paper file in case of an audit.
- Provide a list of the adjusting journal entries made by the tax preparer/accountant to the financial database. After the tax return is prepared, the owner or their bookkeeper must add the adjusting journal entries to their database.
Posted by: David Goodman, President of Companion Connection Senior Care, the premier No Royalty Membership Organization serving the non medical home care and licensed home health business communities. Demand for home based elder care is soaring! CCSC will help you start your own highly successful Home Care Agency business. Contact us today for a FREE Business Info Kit… 1-800-270-6949
Tags: avoid IRS audit, home care business, senior care business, small business tax tips, tax accounting software, tax preparer, taxes advice
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