Cleaning Up Books - Part 2 | Incite Tax #irssucks
In this segment, the presenter offers two essential, quick bookkeeping tips aimed at preparing clean financial records for tax filing and minimizing audit risk. First, he stresses the necessity of having every financial account—especially all bank accounts—recorded in the books, noting that clients often overlook entire accounts that contain income and expenses, which can trigger suspicion during an IRS audit. Second, he highlights the importance of reconciling those accounts, explaining that unreconciled books cannot be considered clean. He describes how the IRS’s initial audit focus is on bank statements, and missing or unreconciled accounts can lead auditors to suspect fraud. The overall message is that ensuring all accounts are included and properly reconciled is a straightforward yet critical step to maintain clean books and avoid audit complications.
