Bohemia, NY (PRWEB) September 29, 2013
Lawrence Teicher, founder of CFO Consulting Services, comments on an article published by Fox Business on August 30th, which details how small businesses can avoid being audited by the Internal Revenue Service.
According to the Fox Business article titled “6 Ways To Avoid An Audit,” many small business owners have a higher chance of being audited by the IRS than average workers. While there is no real reason why small business owners are more susceptible to audits, the article says there are ways to ensure good status with the IRS. Data entry errors, miscalculations, and accidental false income reporting could raise red flags with the IRS.
The article lists a few tips to help small business owners avoid being audited.
- File tax returns electronically
- Double check for data entry mistakes
- Accurately report income
- Do not round numbers
- Have proper documentation where required
- Hire a tax professional
Lawrence Teicher, founder of CFO Consulting Services, a part time CFO services company, agrees. He says hiring a tax professional could really help minimize errors and red flags with the IRS. “Tax professionals know how to file tax returns and it’s their job to understand and apply the tax laws properly he says. “However, when hiring a professional, you have to make sure they possess the necessary qualifications. Not all tax preparers are CPAs or tax attorneys.”
Teicher also says CFOs or other small business owners should be actively involved in documenting expenses accurately. “The IRS is very particular about the documentation required to support a deduction.” he says. “A part-time CFO with a strong tax background can identify documentation issues and better insulate your business from a large tax assessment. With the IRS now cross checking credit card activity with reported income on tax returns, increased IRS scrutiny is already a fact of life.”
[CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.