Entrepreneur.com contributor Rosalind Resnick, founder and CEO of Axxess Business Consulting, a New York consulting firm that advises startups and small businesses, has put together a list of five steps to follow to lower your chances of being audited.
“Every year, the Internal Revenue Service audits approximately 1 percent of U.S. taxpayers,” Resnick writes. “Though the odds are slim that your return will be singled out, they increase dramatically if you run a cash business like a bar or restaurant, take a home-office deduction, make large charitable contributions or work for yourself.”
Resnick’s five tips for small business owners looking to avoid an audit include:
- Keep accurate books
- Deduct within reason
- Check your math
- Back up your records
- Get professional help to lessen the risk of being audited
To read the full article in detail and learn more about these five tips, click here.