Professional Tax Preparer for Financial Audit
Every year has its dreaded time of accounting, taxes, and legal proceedings. Most people don’t look forward to this either because they may not have enough financial information at their disposal or they simply aren’t aware of what is going on with their business. What is really important about this process is the preparation you put into it knowing if there is any chance of a financial audit. Even if you think there isn’t, it is always better to be safe than sorry when tax time comes around.
In order to prepare for an audit from the IRS, you need to have all your documentation available, including bank statements and documents showing money coming in and going out. When you have all of this information, it will show that your business is accountable for its financial decisions and has nothing to hide. If the IRS decides to look into your case anyways, then they can determine whether or not your business should be audited or just a simple tax return.
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What is an audited financial statement?
As your business grows, so do the complexities of accounting and taxes, as well as the chance for business owners to make mistakes when filing taxes. As an entrepreneur, you want to focus on growing your company, and eventually retiring, rather than spending time on tedious paperwork. That’s where professional tax preparation comes into play.
Our team of professional tax preparers at Gilbert Tax Preparation Service will ensure your business is prepared for the upcoming tax season and can assist you with:
- Developing a plan to strategically reduce taxes that will maximize financial savings
- Save you money by reducing penalties, interest, or any other expenses associated with tax matters.
- Saving you time by preparing any necessary documentation for this tax season
It is important to get your reports in on time so that the auditor doesn’t need to do extensive research. It is important to contact our team to learn about ways to start ensuring your financial documents are accurate before an audit, such as reconciling bank accounts at the end of each month. We can help you:
- Assist small businesses with tax audits by providing the latest IRS audit protection techniques and preparation processes.
- Assist small businesses in filing amended income tax returns for up to three years from the day the original return was filed. This helps reduce any financial stress that can be associated with audits.
- Develop a year-round strategy to help your business grow through tax savings and consulting services.
- Assist businesses in achieving greater accuracy in their financial documents so they are prepared for an audit.
What is a Financial Audit?
An audit is an examination of a business or taxpayer’s records and supporting documents to ensure that his or her tax return information is complete and correct. If necessary, an auditor will ask questions about your business to verify the accuracy of the information you have provided.
For company’s and businesses, a financial audit is an examination of financial records. It is used to verify the accuracy of a company’s financial reporting, which helps investors make informed decisions about buying or selling shares in that company. When a company goes through a financial audit, the results of the audit determine whether the company is financially stable and has handled its finances correctly.
It can help prevent unpleasant surprises, such as a drop in stock prices or negative reactions from creditors and lenders who rely on an accurate financial picture of your company. It doesn’t just help to ensure that you’re meeting all regulatory requirements; it also helps you stop potential problems before they start. Also, whenever it’s time to do your taxes, it’s always good to have an audit protection plan in place. This way, you know that if anything happens during the tax season, there is someone to turn to who can make sure everything gets taken care of.
What Are The 4 Types Of Audit Reports?
Audit reports can either be unqualified, qualified, adverse, or disclaimer.
- Clean Report – An clean audit report means that the financial statements are presented fairly with no major errors. This is the most common type of audit report.
- Qualified Report – When you receive a qualified audit, it means there are minor errors or issues that need to be addressed by the company. Creditors and lenders will look for this information to determine if they want to lend you more money in the future.
- Adverse Report – An adverse audit report is the last thing you want to receive. This means that there are major issues with your financial statements and it could potentially put your company at risk.
- Disclaimer – This type of report is given when an auditor feels they need to excuse themselves from providing an opinion about a company’s financials.
You should understand that it’s important to have an accurate grasp of all of these reports because they can affect your company, especially when it comes to potential investors. Having our team prepare you for an audit can help ensure that you don’t run into any errors at the worst time possible.
Who Needs A Financial Audit?
Any company that needs to provide information for their shareholders, creditors, lenders, or the government should have a financial audit. This might sound like an intimidating process, but it’s actually pretty simple and can be easily done by professionals.
Most commonly, small businesses do audits for loan applications, tax purposes, or to show their company’s growth. Larger businesses use an audit as a way to ensure the accuracy of their financial statements and determine any areas that might need improvement. Loaners and shareholders will require audited financial statements before they make any decisions. Also, taxpayers who are preparing for their yearly tax returns might want to have a financial audit if they need a refund or wish to file an amended return. Keeping everything in place and organized is key to knowing where you stand and what to expect.
Why is Tax Preparation Important Before An Audit?
If you are preparing for a financial audit, it’s important to know what a clean report or qualified report means. It is also important to know that accounting errors could result in inaccurate reports and the detection of fraud. Preparing your financial information in advance can make the process run much smoother, helping to determine how long it will actually take you. When you receive the results of your financial audit, they will be attached to your tax return which makes future filings much easier at that point. If everything is prepared beforehand, then you are less likely to have issues with getting everything done after your audit.
What are the Benefits of Hiring a Professional Tax Preparer?
Aside from experience and proven expertise, tax preparers such as Cindi Crenshaw and Gilbert Tax Preparation Service experts can offer one-on-one consultation with you to discuss your financial situation. This is great for businesses who are looking for guidance on how to increase profitability, reduce taxes, and become more efficient.
Another benefit is that we are equipped with the latest software and technology to ensure your returns and financial records are accurate. We also provide maximum security measures for you and your information. We return our signed documents electronically with a receipt of accepted payment, so we can keep track of all the necessary signatures and originals we may need. Cindi Crenshaw and Gilbert Tax Preparation Service can handle all your tax needs so you can focus on what’s important to you!
What Documents Does Tax Preparer Need To Prepare For An Audit?
Preparing for a financial audit can be tricky, especially if you don’t have the right tools. In addition to preparing your tax return, it’s important that you also prepare all of the necessary documents and reports that you’ll need.
- Social Security details
- Income statements
- Other types of income
- Tax deduction documents
- Receipts for expenses
Social Security details
Social Security details are the most important thing to have. You will need your employer ID number or social security number in order to get a copy of the W-2 from your place of work. This is where all of your income and tax deductions are reported, so it’s important to have this information in advance in case anything ever changes.
You will also need to prepare income statements for each of your employees, or for yourself if you are a sole proprietor. This is where your revenue, expenses, and tax details are reported. Without these statements in place, you won’t be able to get accurate information about what you owe or what you can claim.
Tax Deduction Documents
You’ll need your tax deduction documents in place to help support the various expenses you have throughout the year. If you’re unable to provide this information, it can lead to an inaccurate financial audit and potential problems for your company.
Receipts For Expenses
Last but not least, you should keep all receipts for your expenses. This can include business-related expenses, home office costs, or equipment costs. You will need to give all of the appropriate receipts for these items to your auditor before they’re able to process anything further.
By reviewing the above points, you should have a better understanding of what is needed during your financial audit. It’s important to ensure a clean and accurate audit so you can continue to run your company as it should be. You can get in touch with Gilbert Tax Preparation Service anytime to learn more about what documents you should be organizing to get ready for your financial audit.
Tax preparation service in Gilbert, AZ
For over 30 years Cindi Crenshaw and Gilbert Preparation Tax Service have provided outstanding service at an affordable price. If you are in need of tax preparation services for your company, Cindi Crenshaw and Gilbert Tax Preparation Service are here to help. We will handle all your tax needs so you can focus on running your business. Contact us today!
How To Find A Professional Tax Preparer
There are tons of tax preparation service providers across the country. Choosing the right one to prepare your taxes can be tough, especially if you are not familiar with what these companies have to offer. Also, there are things to consider when thinking of hiring a professional.
To ensure you are getting a quality service for an affordable price, it’s important to make sure you know what to look for in a good tax preparation service provider. You should also consider other things that may be unique or specific to your situation as well. Here’s a list of some helpful tips on how to find a professional tax preparation service provider.
- Research – Your first step should be doing a little bit of research for any tax service providers in your area. Take a look at what they have to offer and think about how their services will benefit you the most. Also, check online reviews on various forums or on Google as well as ask friends or family members who they would recommend.
- Experience – How long has the tax service provider been in business? Are they familiar with your type of tax return or situation? These are things you should know before hiring a new company to help you get your taxes done.
- Customer Service – Customer service is important to many Americans who are looking for an affordable price combined with great customer support. The last thing you need during tax season is poor customer service.
- Price – A good indication of the quality you are getting for your money is the price of the tax preparation services they offer. Keep in mind that their prices may be higher than what you would expect, but this may mean they have more experience than others who charge less. A professional is expensive, but an amateur can cost a fortune.
Find an affordable and reliable tax preparation service provider that you can trust. Gilbert Tax Preparation Service has over 30 years of experience preparing taxes for businesses, entrepreneurs, and the self-employed. If you are in need of tax preparation services for your company, we are committed to providing outstanding service at a fair price. Simply contact us and learn how we can help!
FAQs About Tax Preparation For Financial Audit
Get In Touch With Our Tax Experts
You don’t have to go through the tax season alone. Gilbert Tax Preparation Service is here to help. Contact us today to schedule a free consultation and see how we can make tax season a little less stressful.