By Joseph Lanzi, CPA
A recent U.S. Court ruling will require greater vigilance when it comes to your electronic records. Specifically, the ruling upholds the right of the U.S. Internal Revenue Service to request an electronic backup of any company’s accounting records. This means if a business attempts to withhold electronic records, the IRS can either issue a summons demanding them or disallow all tax items it cannot substantiate without access to the records.
| At DGC, we recommend that bookkeepers (and anyone else with access to company financial records) maintain those records as if an IRS auditor may be reviewing them someday. We are encourage our clients to adhere to best practices including: |
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Keep audit trails on |
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Use adjusting entries |
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Document everything |
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Archive or condense data for prior tax years |
As advocates for our clients, we want to make sure you have the right procedures in place. With this latest ruling, it is more important than ever before that your bookkeepers be properly trained on the use of QuickBooks. Remember, we are available to provide training and consulting to make sure you are implementing best policies and practices. For more details, contact your DGC representative today.
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