Better Business: Five Tips for Avoiding an Audit

Nov 30, 2010

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.