The Wall Street Journal reported the following in 2011 and nothing has changed, “The Internal Revenue Service, moving aggressively to collect more taxes from small businesses, is telling companies being audited to turn over exact copies of the electronic records kept in their business-software programs, according to a letter from an agency official to the American Institute of CPAs.”
It is always important to keep good financial records in order to understand how your business is doing but it looks like it may become much more important if the IRS is requesting files from automated accounting software. Banks, factoring companies and now the IRS will want to see financial statements. Well kept accounts make it easier to provide the requested information. IFG’s invoice factoring service will always require financial statements as a part of the initial requests for information as will other financial institutions.
Maintaining good financial records is important and can save you considerable time when applying for money or working with the IRS. Good financial records can also help in business planning functions for growing a business.
Jan J. Cunningham
The Interface Financial Group
