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Avoid Tax Time Stress with These Tips

Many small business owners fear the thought of an audit. However, you don’t have to quake in your boots as much if you keep thorough and organized bookkeeping records. The number one rule for bookkeeping and how to avoid an audit: Have a record of everything that flows in and out of your business. You’ll be prepared to answer any auditing questions and provide the required paperwork when billed for additional tax.

Although U.S. law doesn’t require any kind of recordkeeping system, good recordkeeping ensures your company has accurate financial statements, acts as a report card on your business progress, tracks deductible expenses and helps with tax return preparation.
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