On Keeping Good Financial Records

Good financial records have never been more important

It has never been more important that you make sure you have current and accurate financial statements and make sure you’re working with a professional who knows how to read them. The IRS is doubling its audit staff in an effort to raise money. The absolute best protection is all in your record keeping.

If you take credit cards, you’ll have to reconcile the statements that you receive from service providers with your books and records. (That’s thanks to a new form you’re going to get called Form 1099-K).

If you have income in an S Corp, you have to pay yourself a salary or risk a penalty. That’s part of the new S Corp initiative. Other things to be concerned about: calculating and recording basis and making sure your accounting method is correct.

Talk to your CPA and make sure you are set up appropriately.