When you own or manage a small business, you want to spend as much time as possible growing your company, building relationships with customers and making sure you provide quality products or services. Almost every small business has to deal with a lot of other tasks and responsibilities, the most daunting of which is keeping finances straight and preparing for taxes.
This is for good reason. The IRS has always audited more small companies than big ones, and over the last few years the IRS is targeting an even larger percentage of small businesses. Small companies were audited 41% more often in 2007 than they were in 2005. Conversely, companies with $10 million to $50 million in assets were 29% more likely to be investigated, a Syracuse University study recently found.
This should be a warning to small business owners to keep their records straight so that an audit is as painless as possible. A prolonged audit can cost a small business tens of thousands of dollars. Scanning receipts and other financial documents is a great way to organize the records you need for an audit. Since 1997, the IRS has accepted such digital copies.
Shoeboxed will scan and organize all receipts and other audit-related documents for you so that you can get back to running your business and feel less stress if the Tax Man comes a-knockin’.
And don’t forget, for easy online tax filing, we recommend TaxACT.